The crypto market recovery is in full swing, with altcoins leading an explosive rally that wiped out more than $800 million in short positions. Traders are brushing off recession concerns, as renewed optimism around a potential U.S.–UK trade deal and surging institutional activity breathe fresh life into the market.
While Bitcoin hovers near the critical $100,000 level, it’s the altcoins that are grabbing headlines, delivering double-digit gains and triggering a wave of crypto liquidations not seen since 2023.
Why Crypto Market is Up Today?
Several key factors are fueling this crypto market recovery:
- Record ETF Inflows: U.S.-listed spot Bitcoin ETFs reached $40.62 billion in cumulative inflows, hitting an all-time high and signaling strong institutional demand.
- Pro-Crypto Regulation: Arizona passed a Bitcoin reserve bill, becoming the second U.S. state to back BTC investments and even claim ownership of unclaimed coins. This legislative move reinforces the growing regulatory acceptance of crypto assets.
- Macro Tailwinds: News of a potential U.S.–UK trade deal and easing global trade tensions are supporting risk-on sentiment across financial markets.
Ethereum Price Surge
Ethereum (ETH) surged 20%, reclaiming the $2,000 mark for the first time since March. The spike triggered over $310 million in liquidations tied to ETH short positions, according to Coinglass. The surge is largely credited to renewed institutional momentum and growing excitement around Ethereum’s Pectra upgrade.
Dogecoin, Cardano, and Solana Follow Suit
The altcoin rally didn’t stop with ETH. Dogecoin (DOGE) and Cardano (ADA) each soared over 10%, while Solana (SOL), XRP, and Binance Coin (BNB) also posted gains of at least 7%. These rapid price movements blindsided bearish traders, contributing to the largest daily crypto liquidation event this year.
Crypto Liquidations Wipe Out the Bears
According to coinalyze data, More than 84% of liquidations on Thursday were from short positions, marking a brutal day for bearish traders. The $800 million liquidation wave is the largest since the $500 million short squeeze in April, underscoring the current bullish momentum.
Market Outlook: Bulls Back in Control?
The crypto market now shows signs of strong risk appetite. As macroeconomic uncertainty lingers, traders remain watchful—but current momentum suggests bulls have reclaimed dominance, at least in the short term. If Bitcoin decisively crosses the $100K barrier, the next phase of this crypto market recovery could see even more explosive gains.
