Crypto Markets Surge — $281M in Shorts Liquidated Amid Rate Pause Hopes
By John Nada·Jul 3, 2026·3 min read
Ether and Solana led a crypto rally with $281M in shorts liquidated as weak U.S. jobs data eased rate hike fears, lifting Bitcoin near $62,000.
Ether and Solana surged as a sharp short squeeze sent Bitcoin close to $62,000, marking the strongest week for crypto markets since mid-June. A staggering $281 million in bearish bets evaporated within 24 hours, according to CoinDesk. Ether took the brunt, with the largest liquidation being an $18.2 million position, leading the charge against short sellers with $157 million wiped out, while Bitcoin saw $103 million in liquidations.
The crypto market's rally was not an isolated event. It coincided with broader macroeconomic developments that played a crucial role. Weaker U.S. jobs data helped alleviate pressure for further Federal Reserve rate hikes, boosting risk assets from digital currencies to Asian equities. Bloomberg noted that softer employment figures trimmed expectations of restrictive Fed policies, causing the dollar to weaken and gold to climb for a third consecutive day.
CoinDesk reported that Bitcoin reached around $61,360, up 2.5% over the week. Ether jumped 4.2% in a day to about $1,702, up 9.7% on the week, while Solana approached $80, marking an 18.6% weekly ascent, the most significant among major tokens. XRP and Hyperliquid's HYPE also posted respectable gains of 5.7% and 5.1%, respectively.
Gold Jumps 2.5% as Fed Rate-Bets Unwind — Silver Surges Higher
Gold rose 2.
Asian markets joined the rally, with South Korea's Kospi rising 3% after nearly slipping into a bear market. Samsung Electronics surged 6.8% on news of potential collaboration with AI firm Anthropic, highlighting the relentless drive of AI investment despite debates about its pace. This uptick in tech shares offered crypto markets some breathing room as it steadied the broader equity landscape.
The mechanics of the short squeeze added another layer to the market dynamics. Traders betting against crypto lost $281 million to liquidations over the past 24 hours, against $159 million in longs, out of $440 million in total forced closures across 95,690 traders, according to Coinglass data. When shorts are forced to close, they buy back the asset, and that buying pushes prices into the next tranche of shorts, the loop that turns a modest bounce into a squeeze.
Yet, the lingering question remains — will the short squeeze translate into sustainable demand? While short-covering can trigger swift price movements, it doesn't guarantee long-term buying interest. U.S. spot Bitcoin ETFs are grappling with record monthly outflows, and with the market entering the third quarter, liquidity is thinning, posing challenges and opportunities. The open question is whether this squeeze becomes a trend, considering the thinner liquidity that cuts both ways. The stabilizing AI trade removes the immediate pressure of capital rotating away for crypto markets, though it also revives the competition for flows that defined the first half of the year.