Bitcoin and Ethereum Surge Triggers Massive $250M Short Squeeze

The crypto market saw a dramatic reversal on Friday. Following the release of US CPI data, Bitcoin initially dipped toward $76,000 as traders prepared for bad news. However, the market quickly shook off the pressure and turned sharply upward, with Bitcoin climbing toward $80,000 and taking the rest of the market with it.

Ethereum acted as the star of the show. It jumped 8 percent on the day and pushed past $2,660 for the first time since late January. This sudden price action caught many traders off guard, leading to a massive wave of liquidations across the ecosystem.

Data indicates that over $250 million in short positions were wiped out within a single hour. Ethereum accounted for more than half of those losses. In total, the market saw roughly $660 million in liquidations throughout the day, affecting nearly 100,000 individual traders.

This rapid turnaround shows how quickly sentiment can shift even after economic reports are released. Investors should keep a close watch on whether these price levels hold or if the market faces further volatility as the weekend approaches.