Ethereum is making history:
We are witnessing one of the largest short squeezes in cryptocurrency history. Ethereum’s market cap has surged by $150 billion since July 1 — just days after net short positions hit an all-time high.
What happened? This article explains it for you.
Take a look at the chart below:
According to Zerohedge data, Ethereums net leveraged short position reached a historical peak in July. In fact, the net short exposure is about 25% higher than the level in February 2025. This directly led to Ethereums 70% surge in less than a month.
But the story is far from over.
President Trump’s World Liberty Financial has been increasing its holdings of Ethereum. The latest trading records show that just 24 hours ago, the institution completed a $5 million purchase. This has added fuel to the already fierce short squeeze.
It is worth noting that most of these short positions come from institutional capital.
Even more intriguing is:
Zerohedge reports that BlackRock ETFs increased their holdings of Ethereum 29 days out of the 30 days before July 1. But as mentioned earlier, due to a sudden surge in leveraged short exposure, prices continued to fall. Apparently, smart money predicted this storm.
We are seeing this now: Billions of dollars of short positions are being liquidated in a chain reaction. If Ethereum rises another 10%, another billion dollars of short positions will be liquidated.
In addition, since most of these short positions are leveraged, the market is facing stronger short squeeze pressure.
Ethereum could hit $4,000 soon.
We have also observed a similar effect on Ripple, while Bitcoin continues to show relative strength. Bitcoin has officially returned to the $120,000 mark, with a market cap increase of $900 billion since the April low. After months of slump, Ethereum and Ripple are finally catching up with Bitcoins gains.
We predicted this trend in advance. Here are some of the early warning tips we provide to premium members: We bought the bottom in batches at the price of 80,000, 90,000, and 100,000 US dollars, and accurately predicted the target of 115,000 US dollars. Last week, we raised the target to 120,000 US dollars+, and this goal has just been achieved.
More importantly, the market is digesting the blockbuster report released by FT today. President Trump will sign an executive order as early as this week to allow 401k pension plans to invest in cryptocurrencies. This will be one of the most milestone positives in the history of encryption.
As of the first quarter of 2025, the size of 401k pension funds in the United States will reach 8.7 trillion US dollars. The current total market value of cryptocurrencies is only 3.8 trillion US dollars. This means that funds equivalent to 2.3 times the size of the entire crypto market will soon gain access. This is of epoch-making significance.
More importantly, the U.S. House of Representatives passed three important Bitcoin and cryptocurrency bills: the Clarity Act, the Genius Act, and the Anti-CBDC Act.
The biggest victory for the cryptocurrency industry is that it has gained cross-party support. Candidates who refuse to embrace cryptocurrency can no longer win elections.
As we have always emphasized: Institutional capital can no longer ignore cryptocurrencies. Over the past 13 years, Bitcoin has achieved a compound annual growth rate of +90%, outperforming almost all assets in the world.
We continue to receive feedback from institutional investors that their assets under management (AUM) are gradually being allocated to crypto assets.
Looking ahead, the core logic driving the rise of cryptocurrencies will trigger major macroeconomic changes. This is redefining the operating paradigm of financial markets.
Finally, let’s not forget the most powerful bull market engine for cryptocurrencies – the US deficit spending crisis. Not only has Bitcoin risen 55% since April, but the US dollar index has fallen 10% this year. The US dollar has fallen into a perpetual bear market.
