Rapid Bitcoin and Ether Gains Spark Massive $375M Futures Shakeout

Bitcoin Rallies Off Support as Powell Signals Policy Shift; $375M in Crypto Liquidations

Bitcoin surged Friday after Federal Reserve Chair Jerome Powell signaled the potential for interest rate cuts, reigniting bullish momentum across digital assets and triggering widespread derivatives liquidations.

BTC climbed 2.6% to $114,800 after rebounding from a key support zone at $111,800, a level last tested during May’s record highs. The rally came in response to Powell’s comments at Jackson Hole, where he flagged rising risks to employment and hinted that policy easing could arrive as soon as September.

“Downside risks to employment are rising,” Powell said, warning that labor market weakness could unfold rapidly through layoffs and unemployment — a marked shift from the Fed’s previous tone.

ETH Leads Gains; Shorts Wiped Out

Ether (ETH) posted a strong 10% rally, climbing from $4,200 to $4,650 in just four hours. The surge led to $150 million in ETH short positions being liquidated, part of the $375 million wiped out across the crypto derivatives market, according to CoinGlass data.

The liquidations followed a pre-speech sell-off, with the majority of losses concentrated in short positions. The market’s swift turnaround caught bearish traders offside.

Leverage Returns as Volatility Spikes

Despite the sharp squeeze, open interest rose to its highest level in four days, suggesting traders are quickly re-entering with leverage. Coinalyze data confirms that renewed positioning is backing the price recovery.

Altcoins broadly lagged ETH’s performance, though select names such as Lido (LDO) and Ethena (ENA) extended gains after recent regulatory clarity on staking.

Outlook

The sharp move reinforces the crypto market’s sensitivity to macro policy signals. With rate cut expectations now back in focus, traders are watching closely for confirmation in upcoming economic data.