Ethereum jumped as much as 8.3% over a 24-hour period, marking its biggest move in three weeks. The rally wiped out more than $255 million in short positions, while Bitcoin shorts were liquidated for $172 million over the same timeframe.
The move came as U.S. markets reacted to economic data releases and falling oil prices. Across the crypto market, nearly $500 million in combined long and short positions were liquidated over the past day, among the largest totals since Bitcoin's major short wipeout last month.
Leverage positions under pressure
On Binance, approximately $76 million in Ether positions were liquidated in 24 hours, with most representing forced short closures. Ether perpetual futures showed negative funding rates, meaning short-position holders were required to pay fees to maintain their trades while those on the long side received payments.
Around $188 million in Ether positions were liquidated in a single hour as prices climbed, according to Coinglass data.
Bitcoin recovery amid tech correlation
Bitcoin has also been rising, moving approximately 20% over the past month to trade above $80,000. However, the year-to-date performance remains negative, down close to 10%.
Bitcoin ETF inflows have picked up momentum, with the iShares Bitcoin Trust bringing in about $3.5 billion in net inflows over the past month, leaving the fund close to even for the year following earlier outflows.
Analysts noted that Bitcoin continues to show correlation with technology stocks, meaning investor risk sentiment toward the tech sector influences crypto demand.
Regulatory clarity ahead
The U.S. Senate is expected to hold a procedural vote next week on the Clarity Act, proposed federal legislation to establish rules for digital assets. Coinbase CEO Brian Armstrong told CNBC he believes the bill will pass after crypto companies, law enforcement, and several banks reached common ground on the proposal.
Armstrong noted that regulatory clarity could emerge through alternative paths if Congress does not pass the bill, citing readiness from the SEC and CFTC to publish rulemaking.
