Ethereum is making history:
We are witnessing one of the largest short squeezes in cryptocurrency history. Since July 1, Ethereum's market cap has surged by $150 billion - just days ago, net short positions had reached an all-time high.
What exactly happened? This article explains it for you.
Please see the chart below:
According to data from Zerohedge, as July approached, Ethereum's net leveraged short positions reached a historical peak. In fact, net short exposure is about 25% higher than the levels in February 2025. This directly led to Ethereum's surge of 70% in less than a month.
But the story is far from over.
President Trump's World Liberty Financial institution has been increasing its holdings in Ethereum. The latest trading records show that just 24 hours ago, the institution completed a purchase of $5 million. This adds fuel to the already fierce short squeeze.
It is worth noting that many of these short positions come from institutional capital.
More intriguingly:
A report from Zerohedge shows that in the 30 days leading up to July 1, BlackRock's ETF increased its holdings in Ethereum for 29 days. But as mentioned earlier, due to a sudden surge in leveraged short positions, the price continued to decline. Clearly, 'smart money' anticipated this storm.
We are now witnessing: billions of dollars in short positions being liquidated in succession. If Ethereum rises another 10%, another $1 billion in short positions will be liquidated.
Additionally, since most of these short positions are leveraged, the market is facing stronger short squeeze pressure.
Ethereum may soon reach $4,000.
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, and its market cap has increased by $900 billion since the low in April. After months of stagnation, Ethereum and Ripple have finally started to catch up to Bitcoin's gains.
We anticipated this trend in advance. Here are some warning signals we provided for premium members: We gradually bought the dip at $80,000, $90,000, and $100,000, and accurately predicted a target of $115,000. Last week, we raised the target to over $120,000, and that target has just been achieved.
More importantly, the market is digesting the significant report released by the FT today. President Trump is expected to sign an executive order this week allowing 401k pension plans to invest in cryptocurrencies. This will become one of the most milestone benefits in cryptocurrency history.
As of the first quarter of 2025, the size of U.S. 401k pensions reached $8.7 trillion. Meanwhile, the current total market cap of cryptocurrencies is only $3.8 trillion. This means that funding equivalent to 2.3 times the entire cryptocurrency market size is about to gain entry. This is epoch-making.
Moreover, the U.S. House of Representatives has passed three important bills related to Bitcoin and cryptocurrencies: (Clarity Act), (Genius Act), and (Anti-CBDC Act).
The biggest victory for the cryptocurrency industry is gaining bipartisan 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 an annual compound growth rate of +90%, outperforming almost all assets globally.
We continue to receive feedback from institutional investors that their assets under management (AUM) are gradually being allocated to crypto assets.
Looking to the future, the core logic driving the rise of cryptocurrencies will trigger significant macroeconomic changes. This is redefining the operational paradigm of financial markets.
Lastly, don't forget the strongest bull market engine for cryptocurrencies - the U.S. deficit spending crisis. Not only has Bitcoin risen 55% since April, but the dollar index has also dropped 10% this year. The dollar has fallen into an eternal bear market.
