During the surge in the cryptocurrency market, whales scooped up over $350 million worth of ETH.
Key points
Following the BTC short squeeze, the cryptocurrency market surged to a new high of $112,000. This wave of increase attracted whales into ETH, raising altcoin prices, but meme coins still saw a larger average increase.
On July 9, Bitcoin [BTC] reached a new high of $112,025 on the Bybit exchange, briefly boosting some altcoins including Ethereum [ETH].
Before this surge, the daily inflow of spot BTC ETFs reached $218.04 million, marking the first time since launch that the cumulative net inflow exceeded $50 billion.
BTC short squeeze boosts the market
Moreover, this significant volatility was triggered by the liquidation rush of leveraged shorts, with these short positions around $111,500. According to BTC trader Cryp Nuevo,
"The liquidation target of $111,500 has been reached! The power of liquidation targets is very strong when prices are consolidating. They tend to attract prices like a magnet."
This trader previously considered this level a potential bullish target for liquidity chasing. Jeff Park, Head of Alpha Strategies at Bitwise, shares the same view.
In fact, the buying pressure for BTC surged nearly $660 million within a single minute candle, confirming that the aggressive short squeeze also drove bullish momentum.
SUI, ETH lead altcoins surge
Among major L1 altcoins, Sui [SUI] and ETH led the market recovery with gains of 9% and 6%, respectively.
Notably, ETH jumped to $28,000, attracting seven whales including Abraxas Capital and SharpLink Gaming, who collectively purchased $358 million worth of ETH.
Meanwhile, Solana [SOL] rose 2.5% to nearly $160, and Cardano [ADA] soared 4%.
Some selected tokens, such as Hyperliquid [HYPE], Monero [XLM], Bittensor [TAO], and Hedera Hashgraph [HBAR], also rose 5%-6% during the day's increase.
From an industry perspective, memecoins are at the top, with several boutique currencies like Popcat [POPCAT], Useless Coin [USELESS], and dogwifhat [WIF] achieving double-digit increases.
On average, the return rate in this sector is about 10%, which is double that of the L2 sector and five times that of the DeFi sector.
On a weekly chart, memecoins still lead, followed by DeFi. In short, these sectors performed the strongest during the rapid rise, providing higher returns for traders.
Next week's trading may depend on the June inflation data released on July 15.
This will stimulate expectations for Fed interest rate cuts. According to the cryptocurrency trading department QCP Capital, the market expects the Fed to cut rates in September.
The report emphasizes that
"The likelihood of a rate cut in July has almost disappeared. The probability of a rate cut in September has dropped from 90% to 70%."
