The Liquidation Chaos: Short Traders Feeling the Heat as Bitcoin and Ethereum Prices Surge

The Liquidation Chaos: Short Traders Feeling the Heat as Bitcoin and Ethereum Prices Surge

The recent surge in Bitcoin and Ethereum prices has left short-term traders reeling from massive liquidations, with over $330 million being wiped out from the crypto market in just one day. According to Coinglass data, more than 78,000 crypto traders have seen their positions liquidated, resulting in significant losses for many.

In a surprising turn of events, Ethereum has taken the lead in liquidations, outpacing Bitcoin in the recent market chaos. With the Ethereum price soaring over 20% in a 24-hour period, it accounted for around 32% of the total liquidations, totaling $105.13 million. The largest single liquidation event also occurred on an ETH-USDT pair on the Huobi exchange, costing the trader a staggering $3.11 million.

Despite its longstanding dominance in the crypto market, Bitcoin fell behind Ethereum in terms of liquidations this time around. With $96.53 million in liquidations, the majority of which were from short traders, Bitcoin’s performance paled in comparison to Ethereum’s impressive gains.

The recent market rally, which has seen Ethereum leading the charge with support from Bitcoin, has been fueled by expectations of Spot Ethereum ETF approval. Following the United States Securities and Exchange Commission’s (SEC) request for exchanges to update their 19b-4 filings, market sentiment soared as approval odds for Spot ETFs increased from 25% to 75%. This optimism pushed Ethereum’s price above $3,700 and Bitcoin’s price above $71,000, marking one of the best days for the crypto market in 2024.

Aside from Bitcoin and Ethereum, other coins also saw substantial liquidations during the recent market turmoil. Solana suffered liquidations of $21.53 million, while Dogecoin and PEPE faced liquidations of $7.42 million and $4.3 million, respectively. The widespread impact of the market rally and subsequent liquidations underscored the volatility and unpredictable nature of the crypto market.

The recent surge in Bitcoin and Ethereum prices has led to significant liquidations among short traders, with Ethereum emerging as the frontrunner in the market chaos. As the crypto market continues to experience heightened volatility, traders will need to exercise caution and stay informed to navigate the ever-changing landscape of digital asset trading.

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