In the recent surge of Bitcoin and Ethereum prices towards new all-time highs, short-term traders have faced significant liquidations. In just the last 24 hours, over $330 million were liquidated from the crypto market, with the majority of losses coming from short traders who were betting on a price drop. According to Coinglass data, more than 78,000 crypto traders saw their positions being liquidated, resulting in hundreds of millions of dollars in losses.
Interestingly, the liquidations this time around were not led by Bitcoin, as is usually the case, but rather by Ethereum. With Ethereum’s price surging over 20% in a 24-hour period compared to Bitcoin’s 6% increase, Ethereum accounted for 32% of the total liquidations amounting to $105.13 million. The largest single liquidation event also occurred on an ETH-USDT pair on the Huobi exchange, costing a trader $3.11 million.
Other Coins Affected
While Bitcoin still saw significant liquidations of $96.53 million, the majority of these were also from short traders. Solana followed behind with $21.53 million in liquidations, while other coins such as Dogecoin and PEPE also experienced substantial losses with $7.42 million and $4.3 million, respectively.
The recent market rally was primarily driven by Ethereum, with Bitcoin providing additional support. The surge was further fueled by the United States Securities and Exchange Commission (SEC) asking exchanges to update their 19b-4 filings, crucial for the approval of Spot ETFs. This news boosted market sentiment as expectations for the approval of Spot Ethereum ETFs grew. Bloomberg analysts also revised their approval odds for the funds from 25% to 75%, leading to a significant price increase for both Ethereum and Bitcoin.
The recent wave of liquidations in the crypto market serves as a reminder of the volatility and risks associated with trading in digital assets. Traders, especially short-term traders, must exercise caution and closely monitor market trends to avoid substantial losses. As the market continues to evolve and regulatory developments impact prices, staying informed and adapting to changing conditions is crucial for navigating the crypto landscape effectively.
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