Eric Trump Celebrates as Cryptocurrency Prices Surge
Eric Trump, son of former U.S. President Donald Trump, couldn’t resist a jab at traders betting against the cryptocurrency market. In a spirited message to his nearly 6 million followers on X, he expressed delight at the rise in crypto prices on Friday, specifically targeting those who were shorting Ethereum. He warned that individuals betting against Bitcoin and Ethereum might face significant losses.
During this market rally, Bitcoin surged beyond the $117,000 mark, while Ethereum climbed above $4,200, marking a notable recovery.
Policy Changes Ignite a New Market Upsurge
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The catalyst behind this upward trend appears to be an executive order signed by former President Trump. This directive, which focused on retirement account regulations, sparked speculation about the potential for 401(k) plans to become more favorable towards cryptocurrency investments. As a result, market participants began reconsidering their bearish stances, prompting swift price fluctuations. Traders who had positioned themselves against the rally soon found themselves in a tight spot.
The executive order prompted significant buying interest from U.S. spot ETFs and several treasury buyers, particularly targeting Ethereum. This surge in demand reduced the supply available on exchanges, making it increasingly challenging for sellers to suppress prices. Ethereum’s rally above $4,200 marked the first time it reached this level since December 2024, triggering a wave of short coverings that amplified the gains.
Short Sellers Bear the Consequences
According to trading data, approximately $208 million worth of Ethereum positions were liquidated within a 24-hour period, accounting for over 56% of the nearly $370 million wiped from the futures market during this timeframe. The majority of these losses, around $184 million, stemmed from short positions, with the remaining $24 million from long positions. The resulting forced exits led to a sharper rebound than many had anticipated.
Eric Trump’s comments added momentum to the social aspect of the rally. He has consistently advocated for buying Ethereum during market dips and expressed joy as bearish traders faced significant pressure. Market observers noted that a combination of policy headlines, ETF inflows, and social media activity created an ideal environment for rapid and volatile market movements.
Diverse Analyst Predictions
Market analysts are divided on Ethereum’s potential trajectory if the current momentum continues. Some are optimistic, envisioning a bullish scenario where Ethereum could reach $16,000 by year-end under favorable conditions. Meanwhile, other experts have outlined even more ambitious projections, with one analyst suggesting a near sevenfold increase to $25,000 in an extreme scenario. However, these optimistic forecasts are tempered by cautious voices warning of the potential for a swift reversal.
Eric Trump remains confident that those betting against Bitcoin and Ethereum could face substantial losses, further fueling a rally driven by policy changes and ETF inflows.
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