The recent surge in Bitcoin and Ethereum prices has not been without casualties. Short-term traders, in particular, have been hit hard by liquidations as prices continue to climb. In the last 24 hours, over $330 million was liquidated from the crypto market, with the majority of these losses coming from short traders who bet on prices dropping. More than 78,000 crypto traders saw their positions liquidated, resulting in hundreds of millions of dollars in losses. Out of the total liquidations, short traders accounted for $268.76 million, while long traders only made up $61.31 million of the losses.
Contrary to expectations, Ethereum, not Bitcoin, led the liquidation wave this time around. With a price increase of over 20% in a 24-hour period, Ethereum saw liquidations totaling $105.13 million. The largest single liquidation event occurred on an ETH-USDT pair on the Huobi exchange, costing the trader a staggering $3.11 million. Meanwhile, Bitcoin liquidations amounted to $96.53 million, with short traders making up the majority of these losses. Following closely behind Bitcoin was Solana, with liquidations totaling $21.53 million. Other altcoins such as Dogecoin and PEPE also saw significant liquidations, with $7.42 million and $4.3 million respectively.
The recent market rally, driven by Ethereum’s price surge, has seen Bitcoin providing added support. The United States Securities and Exchange Commission (SEC) requested exchanges to update their 19b-4 filings, a crucial step for the approval of Spot ETFs. This news bolstered market sentiment, particularly with the expectation of Spot Ethereum ETFs gaining approval. Bloomberg analysts adjusted their approval odds for the funds from 25% to 75%, further fueling the bullish market sentiment. As a result, Ethereum’s price skyrocketed from around $3,100 to over $3,700, while Bitcoin also broke above $71,000. This development marked one of the best days for the crypto market in 2024.
Overall, the recent liquidation events serve as a cautionary tale for short-term traders, emphasizing the volatility and unpredictability of the crypto market. As prices continue to soar, traders must exercise caution and risk management to avoid significant losses in the face of market fluctuations.
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