Ether, the second-largest cryptocurrency, surged by as much as 8.3% on Friday, driven by a fresh wave of liquidations in bearish bets, according to livemint.com. This intraday increase marked the largest jump for Ether since a similar spike three weeks prior. Bitcoin also rose, but by less than 4%, amid volatile market conditions.
The rebound came as financial markets reacted to a series of US economic reports and falling oil prices, which contributed to a whipsaw effect across digital assets. The liquidations involved traders closing short positions on Ether, fueling the price rally. This pattern echoed the volatility seen at the end of August, when a Bitcoin surge triggered the largest wave of short liquidations since 2021, per livemint.com.
This event highlights the continuing sensitivity of cryptocurrency markets to macroeconomic data and commodity price shifts. The liquidation-driven rallies underscore the impact of leveraged trading on digital asset prices. Similar episodes in recent months have shown how short squeezes can rapidly reverse bearish trends, affecting investor sentiment and market dynamics.
Ether's price movement on Friday represents a significant intraday shift, with the 8.3% surge standing out as the largest in recent weeks. Bitcoin's smaller gain of under 4% also reflects the broader market's reaction to the liquidation events. These developments were reported by Bloomberg and covered by livemint.com.