Solana Breaks Key Range as Crypto Market Liquidates $689m in Short Positions

Crypto markets have flared back to life this week, with over $500m in liquidated shorts helping $BTC and majors break out of a key range.

Onchain, pump.fun is dominating Solana DEX volumes, suggesting that Solana’s oft-maligned memecoin traders are returning to the trenches in full force.

At the other end of the spectrum, institutional players are pouring funds back into Bitcoin ETFs, which witnessed their highest daily inflows in the last 99 days.

$689m in Shorts Liquidated in 24 Hours

With economic conditions across the financial sector improving, the bulls appear to be back in control of crypto markets. According to Coinglass data, over $689M in short positions have been liquidated across all markets, squeezing $BTC briefly back over $95,000 and breaking the upper bounds of a 57-day range.

While optimism courses through markets, traders are now waiting with bated breath for $BTC to find support at the $94k level, which acted as harsh resistance at the top of the previous range.

The renewed strength on display in financial markets comes following a slew of geopolitical and policy changes in the U.S. Between the United States’ seizure of Venezuelan oil infrastructure, a ban on institutions buying single-family homes, and a 10% cap on credit card interest rates, the U.S. economy is flush with newfound confidence.

Buoyed by Bitcoin’s trajectory, $SOL has also crashed through a similar range, marking a 16% YTD price appreciation. While the CMC Fear & Greed Index has climbed further into neutral territory, the total market cap of crypto assets remains a 32.8% rise away from October highs.

Pump.fun Leads Solana DEX Volumes

With macro assets and crypto surging across the board, Solana’s memecoin traders appear to be returning to the trenches. After watching from the sidelines as the network’s prop AMMs dominate SOL-USD volumes, pump.fun has reclaimed top spot in Solana’s DEX volumes rankings.

According to Blockworks data, daily memecoin volume share on Solana has risen to 38%, its highest level since August 2025. The resurgence suggests that traders have rediscovered their appetite for long tail assets, seeking trade opportunities further down the risk curve.

With trading volume and subsequent fees returning en masse to pump.fun, the protocol’s native asset, $PUMP, is enjoying outsized performance in markets. In the last 7 days’ trading, $PUMP has surged 18.2%, outperforming $SOL’s 3.3% move in the same time period.

Bitcoin ETFs Record Highest Daily Inflows Since October 7

Off the back of new highs in commodities and stocks, institutional players appear to finally be considering rotating capital into crypto markets. After facing net negative flows throughout November and December, Bitcoin ETFs are recording positive inflows so far in January.

Based on SoSoValue data, Bitcoin ETFs have witnessed over $660M in monthly net flows so far in January. However, this figure has only flipped positive in the last few days, with $BTC funds attracting $753M in inflows on January 13, the highest daily figure in 99 days.

Read More on SolanaFloor

Subscribers Disappointed by Broken Promises

Helium Subscribers Furious as DePIN Giant Backs Out of Early Adopter Price Plan

Will Solana See New All-Time Highs in 2026?