Short sellers hit as Bitcoin, Ethereum and XRP rally
Short sellers were hit as Bitcoin topped $62,000, Ethereum rose to $1,701 and XRP reached $1.09; crypto liquidations exceeded $602 million, about $400 million from shorts.
Major cryptocurrencies climbed Thursday as Bitcoin topped $62,000, Ethereum traded near $1,701 and XRP approached $1.09. Traders pushed Bitcoin to a recent high of $62,078 after it fell below $58,000 earlier in the week. Bitcoin was trading around $61,808, up about 3% on the day and 4% for the week. Ethereum and Solana rose roughly 5% intraday, at about $1,701 and $81 respectively. Solana led the top 10 tokens over the past week, gaining more than 22%.
Crypto liquidations reached $602 million over the latest 24-hour period, with roughly $400 million of that tied to short positions. Ethereum accounted for about $187 million of the liquidations and Bitcoin about $184 million, according to market-data trackers. The larger share for Ethereum reflected recent price swings versus Bitcoin.
Traders pointed to comments from former Fed governor Kevin Warsh on Wednesday, when he declined to say whether the Federal Reserve would raise interest rates later this year, and to incoming U.S. economic data. Interest-rate futures priced by market participants showed roughly even odds of a rate hike or a hold at the Fed’s September meeting and about a 64% chance of tightening by the October meeting. The U.S. Bureau of Labor Statistics reported employers added 57,000 jobs in June, below market expectations of 115,000 and down from a revised 129,000 in May.
Publicly traded crypto-related stocks moved with the market. MicroStrategy shares rose nearly 7% to about $100 after dropping to nearly $80 last week. Coinbase shares gained about 3.4% to $165, and Circle traded up nearly 5% to around $65. New government filings show FBI Director Kash Patel bought between $100,000 and $250,000 of MicroStrategy stock on Nov. 21, when shares traded near $181; the stock has since fallen roughly 44% to about $100.55.
The price swings followed heavy selling earlier in the week that pushed major tokens to lower levels and triggered liquidations of leveraged positions. Crypto equities and major U.S. stock indexes diverged on Thursday, with the S&P 500 and Nasdaq trading lower while the Dow was higher. Market activity reflected the combination of concentrated losses among leveraged short positions and traders reassessing incoming macroeconomic signals.
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