Bitcoin extends rally as short liquidations and ETF inflows drive sharp move

Crypto prices surge amid squeeze-driven move

Bitcoin rose roughly 4% over the past 24 hours to reach $75,653 at around 10:00 p.m. ET on Monday, before easing back to about $74,300 hours later. Ethereum advanced 3.28% to $2,315, while XRP climbed 5% to $1.54.

The broader rally was accompanied by approximately $609 million in total crypto liquidations over the past 24 hours, including $485.6 million in short positions, according to public data compiled by Coinglass. Zeus Research analyst Dominick John told The Block that “massive short liquidations” fueled a squeeze-driven extension higher, but he expressed caution about its durability. “Squeeze-driven moves are typically short-lived without sustained real demand, likely fading from days to a couple of weeks,” he said.

Market sentiment showed signs of stabilization. The Crypto Fear & Greed Index stood at 28 in “fear” territory late Monday, having moved out of “extreme fear” after lingering there over the past week.

ETF inflows and macro backdrop support rebound

Analysts cited a combination of spot demand and an improving macro environment as key drivers behind the latest price action. “Bitcoin’s move toward $76,000 and the stronger rebound in Ethereum appear largely flow-driven,” said Rick Maeda, research associate at Presto Research. He highlighted renewed inflows into U.S. spot bitcoin exchange-traded funds and continued corporate buying as significant sources of demand.

U.S. spot bitcoin ETFs recorded $767.3 million in net inflows last week, marking a third consecutive week of positive flows. Spot ether ETFs also attracted $160.8 million in inflows over the same period. Maeda added that stabilizing risk sentiment, amid easing geopolitical tensions and oil-driven inflation concerns, has supported the recovery in high-beta assets such as cryptocurrencies.

Broader financial markets reflected a mixed but stabilizing macro picture. U.S. equities advanced on Monday, with the Dow Jones Industrial Average up 0.83%, the S&P 500 gaining 1.01%, and the Nasdaq Composite climbing 1.22%. Oil prices resumed their climb after a brief pullback, as uncertainty persisted over a U.S.-led coalition to secure shipping through the Strait of Hormuz. Brent crude rose 2.9% to $103 per barrel, while WTI crude gained 2.7% to $96.03.

Traders are monitoring ETF flows, oil prices, and upcoming economic data — including producer price index figures and the Federal Reserve’s March 18 rate decision — for further direction.

FAQ

What drove the latest rally in Bitcoin and other major cryptocurrencies?
The rally was primarily driven by large short liquidations, renewed spot demand, and improving macro sentiment, including positive ETF flows and stabilizing risk conditions.

How significant were crypto liquidations during this move?
Total crypto liquidations reached about $609 million over the past 24 hours, with roughly $485.6 million coming from short positions, according to data aggregated by Coinglass.

What role did U.S. spot crypto ETFs play in the rebound?
U.S. spot bitcoin ETFs saw $767.3 million in net inflows last week, their third straight week of positive flows, while spot ether ETFs recorded $160.8 million in inflows, contributing to demand for the underlying assets.

How has broader market and macro sentiment influenced crypto prices?
Rising U.S. equities, easing concerns over geopolitical tensions and oil-driven inflation, and an improvement in the Crypto Fear & Greed Index from “extreme fear” to “fear” have all supported the rebound in cryptocurrencies.