Crypto Traders Face Liquidations Amid Bitcoin and Ethereum Price Surge
As the prices of Bitcoin and Ethereum surge towards new all-time highs, short-term traders are experiencing significant liquidations. Over the past 24 hours, more than $330 million has been liquidated from the cryptocurrency market, primarily affecting short traders who were anticipating a price decline.
- High Liquidation Numbers:
- Over 78,000 crypto traders were liquidated in the last day, resulting in losses worth millions of dollars.
- Short Traders Hit Hardest:
- 81.42% of the total liquidated amount belonged to short traders, totaling $268.76 million.
- Trend Reversal:
- Surprisingly, Ethereum led the liquidations this time, surpassing Bitcoin due to a significant price increase.
Ethereum Dominates Liquidations While Bitcoin Trails Behind
Data from Coinglass reveals that Ethereum accounted for a substantial portion of the liquidations, with around $105.13 million in losses. The largest single liquidation event occurred on an ETH-USDT pair on the Huobi exchange, resulting in a $3.11 million loss for the trader.
- Breakdown of Liquidations:
- Ethereum liquidations made up 32% of the total figure, while Bitcoin liquidations amounted to $96.53 million.
- Other cryptocurrencies, including Solana, Dogecoin, and PEPE, also experienced significant liquidations.
- Impact of Price Movement:
- The surge in Ethereum’s price contributed to the heightened liquidation activity, overshadowing Bitcoin’s gains.
Bitcoin and Ethereum Drive Market Rally Amid SEC Developments
The recent market rally was primarily led by Ethereum, with Bitcoin providing additional support. The SEC’s request for exchanges to update their 19b-4 filings, crucial for potential Spot ETF approvals, fueled positive market sentiment.
- Market Sentiment Boost:
- Speculation regarding the approval of Spot Ethereum ETFs contributed to the overall market optimism.
- Analyst Predictions:
- Bloomberg analysts revised their approval odds for the funds, increasing the likelihood from 25% to 75%.
- Price Movement:
- Ethereum’s price surged from $3,100 to over $3,700, while Bitcoin crossed $71,000, marking a significant uptrend in the cryptocurrency market.
Hot Take: Monitor Market Volatility Closely
As the cryptocurrency market experiences rapid price movements and increased liquidations, it is essential for traders to exercise caution and closely monitor the volatile conditions. Stay informed about regulatory developments and market trends to make well-informed trading decisions.
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