Bitcoin and Ether’s Explosive Rally Triggers Massive $375M Crypto Futures Liquidation Wave
Crypto markets just delivered a brutal masterclass in volatility—and traders got schooled.
The Liquidation Bloodbath
Bitcoin and Ethereum's sudden surge didn't just break resistance levels—it shattered leveraged positions. Over $375 million vanished from futures markets in hours as prices ripped upward. Longs and shorts alike got caught in the squeeze, proving once again that crypto doesn't care about your stop-losses.
Timing is Everything—Until It Isn't
Traders who positioned for a calm market got steamrolled. The speed of the move left algorithms scrambling and human traders staring at margin calls. Classic crypto—where 'hedging your risk' often just means losing money in both directions.
Finance's Ironic Jab
Meanwhile, traditional finance desks are probably still trying to explain to clients why their 'diversified' portfolios didn't include enough digital asset exposure—right before quietly increasing their own allocations. Some things never change.
This is what happens when dormant giants wake up hungry. Markets move fast. Leverage gets punished. And the only thing certain is the next surprise.
Despite fears that Powell's speech WOULD have a hawkish tone, he said "the downside risks to employment are rising," and "If those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment."
The comments suggest rate cuts could be on the table next month, which would directly benefit risk assets like Bitcoin and ether.
The market remains volatile following the speech, with BTC pulling back slightly from $115,700 to $114,800. While liquidations have taken derivatives positions out of the market, open interest has risen to its highest point in four days, suggesting that the bounce is also being backed by leverage, according to Coinalyze.
The altcoin market is lagging behind ether with the exception of lido (LDO) and Ethena (ENA), which are both continuing their upside ascent after the SEC clarified rules around staking earlier this month.
