Crypto Crash: Short Traders Bear Brunt of $330M Liquidations Amid Bitcoin, Ethereum Surge

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In a stunning turn, as Bitcoin and Ethereum make ground-breaking strides toward unprecedented new altitudes in their prices, short-term cryptocurrency traders have found themselves bearing the brunt of this rollercoaster ride. Substantial liquidations surged over the past day, with over $330 million wiped from the face of the crypto market with a significant majority from short traders – those poised on the expectation of prices taking a downward turn once more.

Data from Coinglass paints a rather grim picture of this frantic 24-hour period where more than 78,000 traders in the realm of crypto experienced the bitter taste of seeing their positions liquidated; a numbing reality that accounts for hundreds of millions swirling down the abyss of loss.

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The tally rings in at a staggering $330 million in liquidations. Breaking down the figures, we find 81.42% of this sum staked out as short trader positions, thus they bore the lion’s share of this purge amounting to $268.76 million. Long traders, although far less affected, were still hit with $61.31 million in liquidations, leaving the crypto trading community somewhat shell shocked.

Traditionally, Bitcoin tends to be at the forefront during such liquidations, but this time the unexpected had its day. Falling behind Ethereum, Bitcoin’s loss can be attributed to Ethereum’s bull run, with its price surging over 20% within the same 24-hour timeframe. Bitcoin, however, stayed in the black with gains hovering around 6%.

Ethereum liquidations thus claimed around 32% of the total, approximating $105.13 million at the time of writing. The boldest single liquidation event, too, featured Ethereum; more specifically, an ETH-USDT pair on the Huobi exchange saw a colossus $3.11 million disappear.

Conversely, Bitcoin liquidations totaled $96.53 million, shadows of short traders looming large over the numbers. Not far behind we find Solana, with liquidations reaching $21.53 million. Dogecoin had somewhat notable liquidations at $7.42 million with PEPE trailing at $4.3 million.

Taking center stage for igniting this market upheaval was Ethereum, as Bitcoin eagerly played second fiddle. The rallying cries reached the hallowed chambers of the United States Securities and Exchange Commission (SEC) where an appeal for exchanges to revise their 19b-4 filings was raised, thus stirring the murky waters of future Spot ETF approvals.

The market sentiment understandably reflected this state of anticipation, with hopefulness for Spot Ethereum ETF approval spreading like wildfire. Indicative of this was the astounding leap in Ethereum’s price, which climbed impressively from around $3,100 echelons to reaching over $3,700. Simultaneously, Bitcoin followed suit, with its price jumping past $71,000, thereby making one of the most memorable days of an already eventful 2024 in the crypto marketplace.