In the world of cryptocurrency trading, the past 24 hours have been particularly brutal for short traders who were betting on prices dropping. Over $330 million has been liquidated from the market, with the majority of this coming from short positions. More than 78,000 traders have witnessed their positions being liquidated, resulting in massive losses.
Contrary to expectations, Ethereum has taken the lead in liquidations this time, surpassing Bitcoin. With Ethereum’s price surging over 20% in a 24-hour span, it comes as no surprise that it accounted for 32% of the total liquidation figure, totaling $105.13 million. The largest single liquidation event also involved an ETH-USDT pair on the Huobi exchange, where a trader lost $3.11 million.
Bitcoin, although still significant in the market, fell behind Ethereum in terms of liquidations. With $96.53 million in liquidations, mostly from short positions, Bitcoin showcased its volatility in the latest market rally. Solana followed behind with $21.53 million in liquidations, while other coins like Dogecoin and PEPE also saw substantial losses.
The recent market rally, characterized by significant price increases in Bitcoin and Ethereum, can be attributed to several factors. The SEC’s request for exchanges to update their 19b-4 filings, essential for approving Spot ETFs, has sparked optimism among traders. This move, coupled with increasing expectations for Spot Ethereum ETF approvals, has boosted market sentiment significantly.
Bloomberg analysts James Seyffart and Eric Balchunas have revised their approval odds for Spot ETFs, increasing it from 25% to 75%. This shift in sentiment has directly impacted the prices of Ethereum and Bitcoin, with Ethereum surpassing $3,700 and Bitcoin reaching over $71,000. This surge marks one of the most profitable days in the crypto market in 2024.
The recent market dynamics have left short traders reeling from massive liquidations, with Ethereum leading the charge in price surges. With optimism surrounding Spot ETF approvals and increasing market sentiment, the crypto market continues to be a volatile yet lucrative space for traders looking to capitalize on price fluctuations.
Leave a Reply