The cryptocurrency market staged one of its strongest recoveries in months, with total market capitalization climbing from about $2.19 trillion on Wednesday to as high as $2.42 trillion, and later above $2.46 trillion, according to CoinMarketCap and subsequent industry data. The rebound represented a roughly 10.7% gain in 24 hours, while the top 20 coins by market cap averaged more than 12% gains.
Institutional ETF demand was a key driver. Farside Investors data showed Bitcoin ETFs pulled in $517.2 million in spot inflows on Wednesday, the highest daily total since early May. Ethereum ETFs followed with $186.8 million in inflows, their strongest daily showing since October of the previous year. The surge in spot ETF buying signaled renewed institutional and whale positioning after a prolonged consolidation phase.
The rapid upside also triggered one of the largest liquidation events since October last year. CoinGlass data showed more than $2.73 billion in midweek short liquidations across the crypto market, alongside roughly $248 million in long liquidations during the same session. On the latest day observed, short liquidations reached $373 million, compared with $56.9 million in long liquidations. Heavy short positioning had built up because many traders expected further downside, leaving the market vulnerable to a violent squeeze once bullish momentum returned.
Geopolitical risk remains a counterweight. The Guardian reported that US President Donald Trump announced plans for another campaign against Iran aimed at economic isolation. The article noted that similar efforts around the Strait of Hormuz have previously caused global destabilization. The largest crypto liquidation event on record occurred on 10 October 2025, when more than $19 billion in leveraged positions were liquidated after President Trump announced economic sanctions. Market participants caution that an escalation in US-Iran tensions could undermine the recovery, potentially putting overextended bulls at risk of another liquidation cascade.
Despite those risks, the market’s ability to hold above $2.46 trillion was viewed as a sign of structural strength. Some investors are increasingly treating major digital assets as dynamic safe havens during macroeconomic turbulence, and the absorption of strategic sell-offs at key support levels could open the door to bullish consolidation if resistance levels are cleared.
