Crypto Market Surges 5% as Fed Signals Rate Cuts and $750M in Shorts Liquidated
The cryptocurrency market experienced a dramatic and unexpected shift in late August, driven by Federal Reserve Chair Jerome Powell’s remarks suggesting a potential earlier-than-expected rate cut in September. These comments, coupled with a short squeeze, led to the liquidation of over $247 million in leveraged positions within a single hour on August 23, 2025—$207 million from short positions and $40 million from longs [1][2]. The surge in buying pressure caused Bitcoin to rise above $117,000 while Ethereum edged closer to a record high near $4,900, triggering further short liquidations totaling nearly $750 million [4].
The market reaction demonstrated the growing sensitivity of crypto assets to macroeconomic signals. With…
