Over $4 billion in crypto short positions were liquidated this week as Ethereum and Bitcoin staged their strongest rally in months.
ETH rose nearly 19 percent over 24 hours on Wednesday, while Bitcoin climbed 5 to 6 percent to cross $70,000 for the first time since June. Over seven days, Ethereum gained 18 percent and Bitcoin advanced 8.8 percent.
The cascade of liquidations generated additional momentum after a period of stagnant market activity. XRP and Solana each gained more than 10 percent in the same 24-hour window.
Bitfinex analysts said the rally has legs. Unlike typical squeeze-led moves, which can falter once liquidation-driven buying exhausts itself, the current strength rests on spot ETF demand, macro tailwinds, and an absence of heavy selling pressure.
Three catalysts converged. The U.S. Treasury's buyback program injected liquidity into government debt markets—a move bond investor Mark Connors flagged as supportive for Bitcoin's next leg toward $180,000. Washington lawmakers also advanced crypto regulatory initiatives during the week. And traditional finance and tech firms expanded stablecoin payment infrastructure; Elon Musk's X platform signaled it would pay creators using stablecoins.
The Crypto Fear & Greed Index registered 66, indicating greed.
Jefferies analyst Andrew Mo cautioned that declaring an end to the crypto correction or the start of a climb to new highs is premature. The near-term focus is on whether the rally sustains and how Washington's policy decisions in the coming month shape momentum.
