04.07.2025 02:49
A surge in Bitcoin's price briefly propelled it past the $110,000 mark on Thursday morning, triggering a massive liquidation of short positions across the cryptocurrency market. This dramatic price movement resulted in over $331 million in liquidated positions, primarily short sells, reflecting a significant shift in market sentiment.
The unexpected price jump followed the publication of the ADP National Employment Report, which revealed an unexpected decline in U.S. private payrolls for the first time since 2023. This unexpected economic data significantly altered market expectations regarding Federal Reserve policy, contributing to Bitcoin's price increase. Subsequently, Bitcoin’s price retreated slightly to approximately $109,720, still representing a 1.8% daily increase and proximity to last month's all-time high of $111,814, according to CoinGecko data.
This volatility significantly impacted Bitcoin and Ethereum markets, with over $101 million in short Bitcoin positions and $91.2 million in short Ethereum positions liquidated within a 24-hour period, as reported by CoinGlass. In total, the market witnessed the liquidation of over $280 million in short positions across various cryptocurrencies. An analyst from the derivatives exchange, Bitunix, noted that the market's reaction to the employment report was swift, impacting not just cryptocurrencies but also gold and the US dollar. Increased probability of a July rate cut, up to 25.3%, fueled the positive sentiment across the crypto market, resulting in the significant price recovery in major assets.
Ethereum mirrored this upward trend, showcasing a remarkable 5.5% increase in the past 24 hours, reaching its highest point since mid-June, trading near $2,600. Despite this positive momentum in specific cryptocurrencies, the overall global cryptocurrency market capitalization experienced a minor dip, falling 0.3% to $3.48 trillion in the last 24 hours, based on CoinGecko data. Among the notable performers were XRP, up 4.9%, Dogecoin surging 7.3%, and Cardano also experiencing considerable gains, according to data from internet sources.
