Bulls Seize Control After $770M Shorts Wiped—What’s Coming Next?
Markets roar back as bears get crushed in massive liquidation event.
The reckoning
Short sellers just got steamrolled—$770 million vanished in hours as bullish momentum overpowered resistance levels. This isn't just a bounce; it's a statement.
Where momentum meets reality
Traders now watch key resistance zones. Breakthrough could trigger another cascade—failure means consolidation. Classic crypto volatility, where fortunes flip faster than a trader's sentiment during a 20% dip.
Next moves
Keep an eye on leveraged positions and exchange flows. When shorts get liquidated, markets often overshoot—then correct. Smart money's already positioning for the next leg up. Or down. Because in crypto, even the 'sure things' come with a side of existential doubt—after all, what's a 770-million-dollar wipeout between friends who still think 'stablecoin' isn't an oxymoron?
$476M shorts wiped as bulls pushes ETH
According to the data shared by CoinGlass, more than $476 million of short bets were liquidated over the last 24 hours. The largest single liquidation order of ETH-USDT-SWAP, worth $10 million, happened on OKX.
Ethereum stole the spotlight as it skyrocketed nearly 15% to hit a fresh all-time high just shy of $4,900. The bull frenzy managed to demolish the record made back in 2021. ETH price is now running up by 42% on a YTD basis. It has outperformed Bitcoin gains of 24% in the same period. Ripple’s XRP is the only crypto among the top 10 that outdid Ethereum in the parallel spell. Ethereum is trading at an average price of $4,714 at the press time. Its 24-hour trading volume has spiked by 129% to hit $80.25 billion.
Data shows that the market saw $384 million worth of long and short bets set on ETH price being liquidated over the last 24 hours. However, $272 million (71%) of the liquidated positions turn out to be short bets. This suggests that traders were hoping that ethereum price would continue to struggle, but that was not the case.
ETH ETFs see $337M inflows while Bitcoin funds bleed
Bitcoin and Ethereum-linked US exchange-traded funds reported decoupling again. BTC ETFs saw $23.15 million flowing out of the funds on Friday. BlackRock’s IBIT was the only ETF that leaked funds. It posted almost $200 million in withdrawals. Meanwhile, Ark and 21shares bagged more than $65 million in inflows. BTC ETFs are on a streak of 6 days printing red indices.
On the other side, Ethereum ETFs recorded a huge inflow of $337.63 million on Friday. This suggests that investors have now shifted on ETH accumulation. Edul Patel, CEO of Mudrex, mentioned that ETH has now gained over 250% from April lows, outpacing Bitcoin. He added that the transactions on the Ethereum network jumped 63% in the past 30 days, while active addresses rose 26%. However, wallets holding over 10,000 ETH have risen by 200 since July.
Behind the noticeable surge sits Powell’s message from Jackson Hole. Instead of doubling down on inflation worries, the Fed chair noticed that the downside risks to employment are rising. He even cautioned that labor market stress can “materialize quickly in the FORM of sharply higher layoffs.” These remarks fueled speculation that rate cuts could arrive as early as September. As of now, markets are now pricing in a chance of policy easing from the current 4.25%–4.5% range.
For crypto traders, the implications are pretty simple. Lower borrowing costs and looser liquidity conditions could extend the risk-asset rally into year-end.
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