Crypto Shorts Liquidate $250M as Fed Signals Shift Market

A significant liquidation of over $250 million in short cryptocurrency positions occurred within a four-hour period, mirroring the upward movement of Ethereum and Bitcoin. This event was triggered by the Federal Reserve’s (Fed) hints of potential interest rate cuts, fueling institutional buying activity as traders responded to these signals. Ethereum and Bitcoin were particularly affected, with both assets experiencing new highs due to increased buying pressure in anticipation of easing monetary policy. This illustrates the cryptocurrency market’s responsiveness to macroeconomic shifts, revealing vulnerabilities within leveraged trading strategies.