Fresh wave of short liquidations fuels latest crypto market rally

A fresh wave of liquidations in bearish bets drove a brief rally in digital assets on Friday, with Ether jumping as much as 8.3% and Bitcoin increasing by less than 4%.

Over $300 million in short positions for Ether and $212 million in bearish Bitcoin bets were wiped out over a 24-hour period, according to Coinglass data.

The quick market move indicates prices are driven more by speculation than actual demand as traders remain largely on the sidelines following the August rally.