Ether surged 18% to reach $2,250 while bitcoin climbed above $69,000 on Wednesday, capping a broad-based crypto rally that saw nearly every major digital asset post double-digit gains over the past week. The rally accelerated after the U.S. Treasury announced it would double its bond buyback program, sending risk assets sharply higher and triggering a wave of liquidations across derivatives markets.
A Sweeping Market Advance
The upswing extended well beyond the two largest cryptocurrencies. According to market data, every major token except tron recorded double-digit weekly gains, underscoring the breadth of the move. Ether led the charge among the largest assets, outpacing bitcoin's more measured advance as traders piled back into higher-beta positions.
The rebound marks a notable shift in sentiment after a stretch of choppy trading. Analysts pointed to renewed appetite for risk assets as the primary driver, with cryptocurrencies benefiting from a more accommodating macroeconomic backdrop.
Nearly $1.4 billion in short positions were wiped out as prices ripped higher across the board.
Short Squeeze and the Treasury Catalyst
The scale of the rally was amplified by a massive short squeeze. Roughly $1.4 billion in bearish bets were liquidated as prices climbed, forcing traders who had positioned for further declines to buy back into a rising market. That dynamic tends to accelerate upward moves, adding fuel to an already bullish tape.
The immediate spark came from Washington. The Treasury Department's decision to double its bond buybacks injected fresh liquidity expectations into financial markets, a development that historically supports risk-on assets like cryptocurrencies. Investors interpreted the move as favorable for tokens that thrive when monetary conditions loosen.
Key takeaways from the session:
- Ether jumped 18% to about $2,250, leading major tokens.
- Bitcoin pushed past the $69,000 mark.
- Tron was the sole major asset to miss out on double-digit weekly gains.
- Around $1.4 billion in short positions were liquidated.
Whether the rally has staying power will depend on how markets digest the Treasury's policy shift and whether the momentum can hold once forced buying from liquidations subsides.