Ethereum soared by 20%, leading a broader cryptocurrency rally that simultaneously triggered over $750 million in short liquidations**—the highest level since 2023. Major altcoins like Dogecoin (DOGE) and Cardano (ADA) surged by more than 10%, while Solana (SOL), BNB, and XRP gained at least 7%. This bullish momentum was driven by market sentiment and a newly announced trade agreement between the U.S. and U.K., with short liquidations on Binance and OKX exceeding **$500 million, setting an all-time high.
$750M+ in Short Liquidations Within 24 Hours
Ethereum’s (ETH) 20% rally ignited a domino effect across crypto markets, resulting in massive short liquidations—the largest single-day volatility since 2023 for bearish traders betting against the market. Data from CoinGlass reveals that 84% of total liquidations were from short positions, with altcoins climbing 10%–20% within hours starting late Thursday.
Key Market Movements:
- Ethereum: Broke $2,000 for the first time since early March, fueled by bullish momentum.
- Altcoins: DOGE and ADA jumped >10%; SOL, BNB, and XRP rose >7%.
- Bitcoin: Briefly surpassed $100,000 amid the U.K.–U.S. trade deal optimism.
How Liquidations Work:
Exchanges forcibly close leveraged positions when traders fail to meet margin requirements (i.e., insufficient funds to sustain trades). Extreme liquidation volumes often signal market turning points, as overreactions may precede price reversals.
This rally eclipsed April’s ETH/DOGE rebound, which wiped out $500M in shorts, indicating reignited risk appetite among traders.
Binance and OKX Lead Record-Breaking Liquidations
Per Coinglass, the largest liquidations occurred on:
- Binance: ETH alone accounted for $310M+ in liquidations.
- OKX: Bitcoin futures contributed $375M, smashing historical records.
Why ETH Surged:
- Short Squeeze: ETH had traded sideways for weeks due to waning retail interest.
- Pectra Upgrade: Ethereum’s recent Pectra upgrade renewed investor confidence, sparking fresh bullish bets.
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FAQ Section
Q: What causes short liquidations in crypto?
A: When leveraged short positions lose value rapidly, exchanges close them to prevent further losses—triggered by margin calls.
Q: Why did ETH outperform other altcoins?
A: Combination of technical upgrades (Pectra) and pent-up demand after weeks of stagnation.
Q: How do trade agreements impact crypto markets?
A: Positive macro news (e.g., U.S.–U.K. deal) boosts investor sentiment, driving capital into risk assets like crypto.
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Risk Warning: Cryptocurrency trading involves high risk. Prices can fluctuate wildly, potentially resulting in total capital loss. Always assess risks carefully.