Why Crypto’s Sudden Surge? BTC’s Short Squeeze and ETF Inflows Explained 🚀💰

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Key Takeaways

  • The crypto market soared after BTC’s short squeeze to a new all-time high of $112K. The rally saw whales flock to ETH, boosting altcoins, but memecoins still outperformed on average.

On the 9th of July, Bitcoin [BTC] reached a new record high of $112,025 on the Bybit exchange, briefly lifting select altcoins, including Ethereum [ETH].

The surge followed a spot BTC ETF daily inflow of $218.04 million, surpassing $50 billion in cumulative net inflows for the first time since its debut. Imagine that, a mere ETF inflow causing such a stir! 🤯

BTC Short Squeeze Lifts the Market

Moreover, the sharp move was triggered by a liquidation hunt for leveraged shorts that was built around $111.5K. Per BTC trader, Cryp Nuevo,

“$111.5k liquidation target hit! When price consolidates, liquidation targets are very powerful. They tend to act as price magnets.”

The trader had previously marked out the level as a potential bullish target for a liquidity hunt. Bitwise’s Head of Alpha Strategies, Jeff Park, also shared the same thesis. Of course, everyone’s a genius in hindsight, right? 😅

In fact, BTC’s buying pressure spiked nearly $660 million in a single 1-minute candle, confirming an aggressive short squeeze also fueled the bullish run. Talk about a rollercoaster ride! 🎢

SUI, ETH Lead the Altcoin Pump

Among the major L1 altcoins, Sui [SUI] and ETH led the market recovery with 9% and 6% gains, respectively.

In particular, ETH’s jump to $2.8K attracted 7 whales, including Abraxas Capital and SharpLink Gaming, buying a collective $358 million of ETH. It’s like a digital gold rush, but with fewer pickaxes and more keyboards. 🏴‍☠️

Meanwhile, Solana [SOL] climbed 2.5% and nearly tagged $160, as Cardano [ADA] surged 4%. Some select tokens, like Hyperliquid [HYPE], Monero [XLM], Bittensor [TAO], and Hedera Hashgraph [HBAR], also posted 5%-6% gains during the day’s pump. 🚀

From a sector-wise perspective, memecoin topped the charts with several gems like Popcat [POPCAT], Useless Coin [USELESS], and dogwifhat [WIF] posting double-digit gains. On average, the segment posted about 10% returns, double the gains seen in L2 and 5x the DeFi sector. It’s a meme world, and we’re just living in it. 🤪

When zoomed out on the weekly timeframe, memecoin still led the rally, followed by DeFi. In short, these were the fastest sectors during snap rallies and could offer traders better returns. It’s like finding a diamond in a pile of memes. 💎

The next week’s trade could hinge on the June inflation data set to be released on the 15th of July. This would spur Fed rate cut expectations. According to crypto trading desk QCP Capital, the market was pricing a September Fed rate cut.

The report highlighted,

“A July cut is all but priced out. September odds have slipped from 90% to 70%.”

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2025-07-10 23:07