Fed signal triggers $375 million cryptocurrency short squeeze

Federal Reserve Chairman Jerome Powell suggested a possible rate cut in September, triggering a sharp short squeeze in the cryptocurrency futures market, resulting in a liquidation of $375 million in funds within 24 hours. Bitcoin and Ethereum have seen a sharp reversal, catching shorts off guard. Ethereum performed well, with ETFs flowing in $3 billion, while Bitcoin ETFs faced $1 billion in capital outflows. Ether futures open contracts hit a record of $10 billion, indicating strong institutional demand. Analysts warn that market volatility may continue before the Fed releases key decisions.