Crypto Rally Wipes Out $4B in Shorts, Sending Prices Soaring

A surprise rally in major cryptocurrencies, including Bitcoin and Ethereum, has pushed prices to multi-week highs after a wave of forced selling wiped out over $4 billion in short positions.

The rally started on August 19 when the U.S. Treasury announced it would double the maximum size of its bond buyback operations for long-dated securities, compressing long-end yields and improving conditions for riskier assets like crypto.

Bitcoin rose from near $64,100 to just under $75,000 within two days, with a single day gain of 8% and an 18% weekly increase. The surge was fueled by the Treasury's announcement and President Trump's urging Congress to advance the Digital Asset Market Clarity Act.

Total short liquidations reached approximately $4 billion, with Binance absorbing around $518 million and Hyperliquid taking roughly $513 million in losses.