Ethereum Squeeze: Short Liquidations Triggered as US Treasury Announces Bond Purchases
Ethereum's price surged more than 8% in a single day, breaking above $2,300 and triggering massive short liquidations across the market. The catalyst behind this rally was the U.S. Treasury's announcement of expanded long-term bond purchases.
According to Coinglass, total liquidations over the past four-hour window reached $802.98 million, with 92% of those being short position liquidations. Ethereum itself saw a 24-hour gain of 8.52%, while Bitcoin rose 1.08% and Solana increased by 5.5%. A 'short squeeze' occurred as prices climbed sharply, forcing investors who had bet on declines to sell their positions.
The U.S. Treasury's announcement was the immediate trigger for this surge, with long-term bond purchases expected to increase market liquidity and lower long-term interest rates. This favorable signal for risk assets led major cryptocurrencies to rebound rapidly after the announcement.