The recent surge in Bitcoin and Ethereum prices has not been without casualties in the crypto market. In the past day alone, over $330 million has been liquidated, with short traders bearing the brunt of the losses. According to Coinglass data, more than 78,000 crypto traders have seen their positions liquidated, resulting in hundreds of millions of dollars in losses. Interestingly, short traders accounted for a staggering 81.42% of the total liquidations, totaling $268.76 million, while long traders only contributed $61.31 million to the figure.
Despite the usual trend of Bitcoin leading in liquidations, this time Ethereum took the spotlight. With a 20% increase in price in a 24-hour period, Ethereum saw liquidations totaling around $105.13 million, making up approximately 32% of the total liquidations. The largest single liquidation event occurred on an ETH-USDT pair on the Huobi exchange, resulting in a loss of $3.11 million for the trader. Bitcoin, on the other hand, had liquidations amounting to $96.53 million, with short traders once again dominating the figures.
Apart from Ethereum and Bitcoin, other altcoins also witnessed substantial liquidations during the market rally. Solana saw liquidations of $21.53 million, while Dogecoin and PEPE faced losses of $7.42 million and $4.3 million, respectively. The overall market sentiment, driven by Ethereum’s surge, contributed to one of the most successful days for the crypto market in 2024.
The excitement surrounding the potential approval of Spot ETFs by the United States Securities and Exchange Commission (SEC) fueled the market rally. Exchanges were requested to update their 19b-4 filings, which are crucial for the approval of Spot Ethereum ETFs. This development, coupled with positive reviews from Bloomberg analysts James Seyffart and Eric Balchunas, led to an increase in approval odds from 25% to 75%. As a result, Ethereum’s price soared from $3,100 to over $3,700, while Bitcoin also experienced a significant jump above $71,000.
The recent surge in Bitcoin and Ethereum prices has created both opportunities and challenges for crypto traders. While long traders have reaped the benefits of the price increase, short traders have faced heavy losses due to liquidations. The market landscape remains volatile, with factors such as regulatory decisions and market sentiment playing a significant role in price movements.