Cryptocurrency sell-offs surpass $400 million as Ethereum (ETH) inches towards $4,000, leaving bearish investors taken aback.

Cryptocurrency sell-offs surpass $400 million as Ethereum (ETH) inches towards $4,000, leaving bearish investors taken aback.

The cryptocurrency market has experienced a substantial revival, with Ethereum (ETH) and Ripple's XRP leading the charge. Liquidations on the ETH trading pair were the highest, accounting for $187 million, followed by BTC and XRP with $57 million and $28 million respectively.

The surge in the market was caused by a series of bullish factors. One of these factors is the official resolution of the Ripple v. SEC case, which has been a long-standing issue in the industry. Another factor is Donald Trump's August 7, 2025, executive order titled "Democratizing Access for 401(k) Investors." This order aims to allow 401(k) investors access to alternative assets, such as cryptocurrencies, private equity, direct real estate investments, commodities, and infrastructure project financing.

Short positions comprised around 80% of the total liquidations, indicating a significant number of traders were betting against the market. However, the bullish sentiment seems to have overpowered these bearish positions.

Ethereum (ETH) surged by 5% daily and is approaching $4,000. Ripple's XRP pumped by 12% to $3.36. Another cryptocurrency that saw a significant increase is Stellar (XLM), which reached a two-week high of $0.46.

The uptick in the market was also marked by a significant amount of liquidations for over-leveraged traders. The total number of liquidated traders over the past day stands at 113,178, with the liquidations for these traders amounting to more than $400 million. The largest single liquidation order occurred on the HTX exchange, involving the ETH/USDT trading pair and was valued at $34.28 million.

Despite the recent surge, it's important to note that the change in regulatory landscape, as outlined in Trump's executive order, is expected to take time. Regulators and retirement plan providers will need to develop rules and funds that comply with the new guidance, with widespread adoption potentially taking several years. The Department of Labor's 2025 guidance rescinded the previous administration's 2022 crypto-specific warnings, returning to a "facts and circumstances" standard for evaluating crypto and other digital assets prudently.

In summary, the executive order creates a policy directive to allow and expand 401(k) investor access to alternative asset classes including cryptocurrencies by revising regulatory guidance and reducing fiduciary barriers, while emphasizing prudent evaluation and participant choice. The cryptocurrency market is currently experiencing a revival, with Ethereum, Ripple's XRP, and Stellar seeing significant increases in value. However, it's crucial for investors to remain cautious and make informed decisions when investing in the volatile world of cryptocurrencies.

1. The surge in the cryptocurrency market, with Ethereum, Ripple's XRP, and Stellar leading the charge, can be attributed to a series of bullish factors, such as the official resolution of the Ripple v. SEC case and Donald Trump's executive order allowing 401(k) investors access to alternative assets like cryptocurrencies.
2. Liquidations on the ETH trading pair, accounting for $187 million, were the highest during the revival of the market, followed by BTC and XRP with $57 million and $28 million respectively, indicating a significant number of traders were betting against the market.
3. Short positions comprised around 80% of the total liquidations, but the bullish sentiment seems to have overpowered these bearish positions, as Ethereum surged by 5% daily, Ripple's XRP pumped by 12% to $3.36, and Stellar reached a two-week high of $0.46.
4. Despite the recent surge, it's important for investors to remain cautious and make informed decisions when investing in the volatile world of cryptocurrencies, as the change in regulatory landscape, as outlined in Trump's executive order, is expected to take time for regulators and retirement plan providers to develop new guidance, with widespread adoption potentially taking several years.

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