While the Bitcoin and Ethereum prices hit a new all-time high, short-term traders have been bearing the brunt of the sell-offs. In the last day alone, more than $330 million was liquidated from the crypto market and most of that came from short traders hoping for prices to fall again.
More than 78,000 traders liquidated for $330 million
Coinglass Data show that the last 24 hours have been brutal for crypto traders. In this short space of time, more than 78,000 cryptocurrency traders saw their positions liquidated, leading to hundreds of millions of dollars in losses.
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In total, there were US$330 million in settlements. Of this value, 81.42% were positions belonging to short traders, meaning they represented US$268.76 million of the total value. Long traders made just $61.31 million in liquidations.
Contrary to the established trend, Bitcoin did not lead liquidations this time, falling behind Ethereum. This is understandable because the price of Ethereum rose more than 20% in the 24-hour period, while the price of Bitcoin maintained gains of around 6%.
Ethereum liquidations represented around 32% of the total value, totaling $105.13 million at the time of writing. The largest single liquidation event also happened on an ETH-USDT pair on the Huobi exchange, costing the trader $3.11 million.
In contrast, Bitcoin liquidations totaled $96.53 million, but like Ethereum, the amount was made up by the majority of traders selling short. Following behind Bitcoin is Solana with settlements of US$21.53 million. Other currencies that have undergone substantial sell-offs include Dogecoin with US$7.42 million and PEPE with US$4.3 million.
Bitcoin and Ethereum lead market recovery
The market recovery that shook the market in the last day mainly led by Ethereum, with Bitcoin providing support. O United States Securities and Exchange Commission (SEC) asked exchanges to update their 19b-4 filings, which are important for approving any spot ETF.
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As a result, market sentiment improved, as expectations for the approval of the Spot Ethereum ETFs to spread. During this period, Bloomberg analysts James Seyffart and Eric Balchunas also revised their chances of approval for the funds from a minimum of 25% to a maximum of 75%.
During this period, the price of Ethereum went from trending around $3,100 to rising above $3,700. At the same time, the Bitcoin Price jumped to over $71,000, triggering one of the best days for the crypto market so far in 2024.
Featured image by Dall.E, chart by Tradingview.com