Original | Odaily Planet Daily (@OdailyChina)
Author | jk
The long-silent crypto market suddenly saw "the bull arrive" today, with major cryptocurrencies collectively surging. Bitcoin reclaimed the $69,000 level, Ethereum's single-day gains approached 20%, and Hyperliquid soared over 22%. The sharp price increase was accompanied by a large-scale liquidation of short positions.
Major Cryptocurrencies Rally Across the Board
- Bitcoin: According to Coingecko data, currently trading at $69,165, up 7.4% in 24 hours, with a 24-hour range between $64,123.86–$69,892.23. Total market cap stands at $1.393 trillion, with 24-hour volume of $41.587 billion. The price maintained narrow fluctuations in the morning before launching a rapid ascent during the European trading session.
Bitcoin Price Chart, Source: Coingecko
- Ethereum: Currently trading at $2,269.04, surging 18.6% in 24 hours, with a range between $1,905.44–$2,318.66. Market cap reached $274.047 billion. Ethereum's gains in this round significantly outperformed Bitcoin, and its exchange rate against BTC also strengthened, indicating accelerated capital inflow back into the Ethereum ecosystem.
Ethereum Price Chart, Source: Coingecko
- BNB: Currently trading at $631.92, up 4.9% in 24 hours, showing relatively modest gains among major market leaders. Range was $600.92–$635.85.
- Solana: Currently trading at $85.65, up 11.2% in 24 hours, range $76.59–$86.96. Market cap is $49.952 billion, with charts showing the price accelerating to break previous highs.
- Hyperliquid (HYPE): The most explosive gainer in this round, currently trading at $71.41, skyrocketing 22.2% in 24 hours, with a range of $58.04–$72.28.
Cause Analysis: Macro Catalysts Spark Rally, Leverage Structure Amplifies Gains
Considering recent market dynamics and derivatives data, this rally was not driven by a single factor but rather a combination of positive macro liquidity developments, warmer regulatory signals, and the concentrated unwinding of leveraged short positions.
Cause One: U.S. Treasury's Surprise "Liquidity Injection," Lowering Long-Term Rates and Boosting Risk Appetite. On August 19th local time, the U.S. Treasury announced it would at least double the size of its long-term Treasury buyback operations, increasing from $2 billion to over $4 billion per operation, covering the period from September 9th to November 4th, primarily targeting 10- to 30-year Treasury bonds. This move was seen as a direct response to the recent surge in the 30-year Treasury yield to its highest level since 2007 (reaching 5.34% at one point). Following the announcement, yields on 10-year and 30-year Treasuries fell, and U.S. stock futures rose simultaneously. The overall improvement in risk sentiment provided a tailwind for the crypto market. The Treasury's operation was interpreted by the market as a form of quasi-liquidity easing, and its timing closely aligned with the start of the crypto market rally.
Cause Two: White House Crypto Summit Combined with SEC Regulatory Easing, Policy Sentiment Turns Positive. On the same day, Trump met with crypto industry executives from Coinbase, Ripple, Gemini, and others, along with heads of the SEC and CFTC regulatory agencies at the White House, reiterating his push for the swift passage of the CLARITY Act in the Senate to provide a clearer regulatory framework for the industry. The day before the summit, the SEC formally proposed a new rule draft titled "Regulation Crypto Assets," intending to offer crypto project teams a funding exemption channel of up to $75 million per year. The concentrated release of friendly signals from regulators and the White House within the same week has somewhat alleviated the market's previous concerns about policy uncertainty, providing a narrative basis for capital to flow back into crypto assets.
Trump Meets with Industry Leaders, Source: ABCNews
Cause Three: Bitcoin Spot ETF Outflow Trend Reverses, Whales Accumulate on Dips. Bitcoin spot ETFs had previously experienced consecutive days of net outflows, but this rebound was accompanied by signs of improved capital flows. Major products like BlackRock's IBIT and Fidelity's FBTC recorded net inflows again, indicating institutional capital is replenishing. Meanwhile, on-chain data shows that large wallet addresses, after about 60 days of continuous selling, have begun accumulating again. This provided support for price stabilization from the spot side and created conditions for the subsequent squeeze on leveraged shorts.
Cause Four: Concentrated Liquidation of Leveraged Shorts, Creating a Classic "Short Squeeze" Scenario. According to derivatives data, short liquidations far exceeded long liquidations during this rally. Based on Coinglass data, as of press time, 24-hour total liquidation volume across all exchanges has expanded to $2.98 billion, with over 170,000 traders liquidated, predominantly shorts. Within a 4-hour window, short liquidations once accounted for as high as 93.3%. The largest single liquidation order across all networks occurred on Hyperliquid's BTC-USD contract, amounting to $48.8 million. The forced liquidation of large short positions often creates an instantaneous buying vacuum on the order book, pushing prices to accelerate away from the previous range, which in turn triggers more stop-loss orders, forming a positive feedback loop of "longs squeezing shorts."
