As bitcoin and ethereum prices have surged towards a new all-time high, short-term traders have borne the brunt of the sell-offs. In the last day alone, over $330 million was liquidated from the cryptocurrency market and most of this came from short traders waiting for prices to fall once again.
More than 78,000 merchants liquidated for 330 million dollars
Currency data sample that the last 24 hours have been brutal for cryptocurrency traders. In this short time, more than 78,000 cryptocurrency traders have seen their positions liquidated, resulting in losses of hundreds of millions of dollars.
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In total, there have been liquidations for 330 million dollars. Of this figure, 81.42% were positions belonging to short traders, which means that they represented $268.76 million of the total figure. Long traders only made $61.31 million in liquidations.
Contrary to the established trend, bitcoin did not lead the liquidations this time, but fell behind ethereum. This is understandable as ethereum price increased by over 20% in the 24-hour period, while bitcoin price maintained gains of around 6%.
ethereum liquidations accounted for around 32% of the total figure, amounting to $105.13 million at the time of writing. The largest single liquidation event also occurred on an eth-USDT pair on the Huobi exchange, costing the trader $3.11 million.
By contrast, bitcoin liquidations amounted to $96.53 million, but like ethereum, the figure was made up of the majority of short traders. Behind bitcoin is Solana with liquidations of $21.53 million. Other coins that saw substantial sell-offs include Dogecoin with $7.42 million and PEPE with $4.3 million.
bitcoin and ethereum lead market rally
The market rally that has shaken the market in the last day has been mainly led by ethereum, with bitcoin as support. He United States Securities and Exchange Commission (SEC) asked exchanges to update their 19b-4 filings, which are important for the approval of any spot ETF.
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Given this, market sentiment had recovered as expectations for the approval of ethereum-spot-etfs/” rel=”nofollow”>ethereum Spot ETF spread. During this time, Bloomberg analysts James Seyffart and Eric Balchunas also revised their funds' approval odds, taking them from a low of 25% to a high of 75%.
During this time, ethereum price went from trending around $3,100 to rising above $3,700. At the same time, the price of bitcoin jumped above $71,000, leading to one of the best days for the cryptocurrency market so far in 2024.
Featured image of Dall.E, chart from Tradingview.com
