Crypto markets staged a broad rebound on July 3, led by Ether and Bitcoin. Ether climbed from a 24-hour low of $1,605 to an intraday high of $1,725, and was trading at $1,706 as of 09:11 Taipei time, up 6.26% on the day. Bitcoin also recovered from $59,776 to $61,507, posting a 2.86% gain and moving back above the $61,000 level.
Short positions took the hardest hit
The rebound drove a sharp wave of liquidations across the derivatives market. According to CoinGlass, total crypto liquidations reached $458.65 million over the past 24 hours. Short liquidations accounted for $299 million, well above $159 million for longs. A total of 99,717 traders were liquidated during that period.
Over the past 12 hours alone, liquidations came to $283 million, including $174 million in shorts and $109 million in longs. The largest single liquidation was an ETH-USD order on Hyperliquid worth $18.2 million. The pattern points to a classic short squeeze rather than a slow, organic climb.
Macro relief supported prices, while ETF flows stayed weak
The report linked the move higher to easing macro pressure. Expectations for inflation softened, and progress in indirect talks between the US and Iran reportedly helped push oil prices lower. That improved risk appetite and lifted crypto along with other risk assets.
At the same time, fund flows have not turned positive. Spot Bitcoin ETFs recorded net outflows of $4.06 billion in June, a monthly record in the source material. Ethereum ETFs also logged multiple days of net outflows. On July 1, Citibank cut its year-end Bitcoin target again, lowering it from $112,000 to $82,000. The bank cited zero net ETF inflows and a shift of market capital toward AI-related trades.
Fed meeting and rate expectations remain in focus
The next key event is the July 28-29 FOMC meeting. The source said expectations for rate cuts this year have narrowed sharply. Prediction market Kalshi showed the probability of no rate cuts at all in 2026 rising to about 40%. With ETF demand still under pressure, rate expectations remain a major variable for crypto pricing.
Ether also had its own narrative support. The report said the Glamsterdam upgrade is expected in the second half of 2026, with testnet activity scheduled for July and August. It also pointed to BlackRock's Ethereum ETF as a factor supporting institutional confidence, even though that confidence has not yet translated into stronger flows.
SOL and XRP advanced, but sentiment stayed in extreme fear
Large-cap altcoins moved higher as well. SOL traded at $81.07, up 4.69%, after touching a 14-day high of $82.2 on July 2. Its 24-hour range stood between $77.41 and $82.78. XRP changed hands at $1.087, up 3.57%, with an intraday high of $1.112.
Even with prices rebounding, sentiment remained weak. The Crypto Fear and Greed Index rose to 21, still in the “extreme fear” zone, up from 19 the previous day and 13 a week earlier. In US equities, the Dow Jones Industrial Average gained 1.07% to a record close, while the Nasdaq 100 fell 1.61%, the Russell 2000 dropped 1.08%, and the S&P 500 finished nearly flat.