Bulls Take Over After $770M in Shorts Wiped—What’s Next for BTC, ETH, and XRP?

Crypto Market Reverses: Bulls Crush Bears After Powell’s Pivot

The bear market narrative is dead—for now.

In a dramatic reversal, the global crypto market roared back after Federal Reserve Chair Jerome Powell’s Jackson Hole speech hinted at imminent interest rate cuts, sending shockwaves through financial markets.

The result?
A $770 million liquidation wave, with $476 million coming from short positions—proving that the bulls are back in full force.

Powell’s Message: “We Might Cut Sooner Than You Think”

At the Jackson Hole Symposium, Powell shifted tone dramatically:

• Acknowledged rising downside risks to employment
• Warned that labor market stress could “materialize quickly”
• Opened the door to September rate cuts

Markets reacted instantly:

• Probability of a September cut jumped from 71% to nearly 90%
• Bond yields dropped
• Risk assets surged

For crypto, it was rocket fuel.

Ethereum Leads the Charge: $476M in Shorts Wiped

Ethereum (ETH) became the epicenter of the rally.

• Price surged 15% to a new all-time high near $4,900
• Outperformed Bitcoin YTD: +42% vs BTC’s +24%
• 24-hour trading volume up 129% to $80.25B
• Active addresses up 26%, transactions up 63% in 30 days

According to CoinGlass, over $476 million in ETH short positions were liquidated in 24 hours:

• Largest single liquidation: $10M ETH-USDT-SWAP on OKX
• Total ETH liquidations: $384M, with $272M (71%) from shorts

This is classic short squeeze territory—traders who bet on a dip were forced to buy back at higher prices, amplifying the rally.

“The market didn’t just break resistance—it vaporized the bears.”

Bitcoin Rebounds to $117,000 Amid ETF Divergence

Bitcoin (BTC) bounced from $112,000 to reclaim $117,000, adding $261B in market cap.

But the most telling sign?
A major decoupling in ETF flows:

• Bitcoin ETFs: $23.15M net outflow
  • BlackRock’s IBIT lost nearly $200M
  • Only Ark and 21Shares saw inflows
• Ethereum ETFs: $337.63M net inflow
  • Institutional capital is rotating into ETH

This suggests smart money is shifting focus from BTC to high-growth, high-utility assets like Ethereum.

Market-Wide Impact: $4 Trillion Back in Sight

The rally lifted the entire market:

• Total crypto market cap: Up 4% to $4.03 trillion
• 24-hour trading volume: $261B (+79%)
• Fear & Greed Index: Now "Neutral", trending toward "Greed"

Even XRP outperformed ETH over the same period, showing broad-based strength across large-cap alts.

Why This Rally Is Different

This isn’t just another speculative pump. It’s being driven by real macro shifts and on-chain fundamentals:

As Edul Patel, CEO of Mudrex, noted:

“ETH has gained over 250% from April lows, outpacing Bitcoin. The network is alive, and investors are noticing.”

What’s Next? Three Scenarios

🚀 Bull Case: Altseason Accelerates

• ETH breaks $5,000
• BTC follows to $130K
• SOL, XRP, ADA see 30%+ gains
• DeFi TVL hits $100B

🟡 Base Case: Consolidation & Rotation

• ETH holds $4,500–$4,800
• BTC stabilizes at $115K
• Altcoin rotation continues
• Volatility remains high

🔻 Bear Case: Profit-Taking Triggers Pullback

• Short-term traders cash in
• Macro data disappoints
• BTC drops below $110K
• But long-term trend intact

Final Take: The Bull Market Is Alive—And It’s Choosing ETH

The message from the market is clear:

• Powell’s pivot changed everything
• Shorts got wrecked
• Institutions are buying ETH, not just BTC
• On-chain activity confirms real demand

For traders, the question isn’t if the bull market is back—but how far it can go.

With $337M flowing into ETH ETFs and $476M in shorts erased, the path of least resistance is up.