BTC Rebounds While ETH Leads Altcoin Rally With 10% Gain
Bitcoin and Ether saw sharp price rebounds on Thursday after U.S. Federal Reserve Chair Jerome Powell hinted at potential interest rate cuts, triggering a wave of crypto futures liquidations totaling $375 million.
Bitcoin Rebounds From Key Support
Bitcoin (BTC) climbed 3.6% from $111,800 to $116,800, bouncing off critical support levels following Powell’s comments during an economic forum. The Fed Chair signaled that rate cuts could be on the horizon, a move widely interpreted as bullish for risk assets, including cryptocurrencies.
ETH Shorts Crushed as Altcoins Rally
Ether (ETH) was the standout performer, surging 10% in a single session, making it the most liquidated asset during the move. According to market data, $150 million in ETH short positions were wiped out, contributing to the $375 million in total futures liquidations across major exchanges.
Altcoins also joined the rally, with Lido (LDO) and Ethena (ENA) posting strong double-digit gains as traders scrambled to cover shorts amid renewed bullish momentum.
Leverage Builds as Volatility Returns
Analysts warn that leverage across the crypto market is rising again, which could amplify volatility in the coming days. “While Powell’s comments provided a short-term bullish catalyst, traders should exercise caution given the elevated leverage and macro uncertainty,” said one derivatives strategist.
The sudden spike underscores the market’s sensitivity to monetary policy signals, with traders now speculating on the timing and scale of potential Fed easing.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.