Bitcoin and Ether Surge Triggers $375 Million in Futures Liquidations

Bitcoin Rebounds on Powell Rate Cut Signal, Triggers $375M in Crypto Liquidations

Bitcoin rallied sharply Friday, rebounding from key technical support after Federal Reserve Chair Jerome Powell hinted at possible interest rate cuts, igniting a broad crypto market surge and forcing nearly $375 million in liquidations across derivatives markets.

BTC climbed 2.6% to $114,800 after bouncing from the $111,800 support level, which marked a major pivot zone established during May’s all-time highs. The move ended a week-long pullback from $124,500.

The rally followed Powell’s comments at Jackson Hole, where he acknowledged rising downside risks to employment and warned that a turn in labor markets could be “sharp and fast.” The remarks were interpreted as a dovish shift, reviving optimism for monetary easing in September.

Ethereum Leads Gains, Derivatives Liquidated

Ether (ETH) led the advance, jumping 10% from $4,200 to $4,650 within hours. According to CoinGlass, over $150 million in ETH short positions were liquidated — the largest among major tokens — as traders were caught offside by the sudden upside momentum.

Bitcoin’s move also triggered major liquidations, with the broader crypto market seeing nearly $375 million in total wiped out, largely from bearish positions.

Leverage Returns, Altcoins Lag

Despite the aggressive liquidation flush, open interest in crypto derivatives surged to its highest level in four days, signaling that traders are re-entering the market with renewed conviction, according to Coinalyze data.

Most altcoins underperformed the ETH-led breakout, though Lido (LDO) and Ethena (ENA) extended their gains, continuing momentum fueled by recent SEC guidance on staking.

Macro Still in Focus

Friday’s rally highlighted the close link between crypto markets and macroeconomic policy expectations. With interest rate cuts back on the table, risk assets — including bitcoin and ether — may see renewed tailwinds heading into the final quarter of the year.