Crypto Prices Soar on Massive Short Squeeze and ETF Inflows
Crypto prices surged to new highs on Monday after a massive liquidation of short positions and a broad-based rally in the market. This was driven by buying pressure from ETF flows, which saw net inflows jump to $999 million for Bitcoin Spot ETF products in the U.S.
iShares Bitcoin Trust ETF (IBIT) led the charge with net inflows of $381 million, followed closely by ARK 21Shares Bitcoin ETF (ARKB) with $289 million and Fidelity Wise Origin Bitcoin Fund (FBTC) with $239 million. Ethereum Spot ETF products also saw a significant increase in net inflows to $270 million.
The surge in cryptocurrency prices was further boosted by hopes of a fresh diplomatic rescue effort to end the prolonged Middle East crisis, which led to a softening in crude oil prices and a mild retreat of the dollar. The aggregate liquidations during the 24-hour period stood at $624 million, with long positions being liquidated at a much lower rate than short positions.
Crypto market sentiment was also lifted by renewed hopes of institutional support, following Strategy Inc's (MSTR) acquisition of 950 Bitcoins worth $75.7 million. The company now holds 846,000 Bitcoins at an average cost of $75,416.