As the Bitcoin and Ethereum prices hav barreled toward a new all-time high, short-term traders have been suffering the brunt of the liquidations. In the last day alone, over $330 million was liquidated from the crypto market and the majority of this has been from short traders who expect prices to fall once again.
Over 78,000 Traders Liquidated For $330 Million
Coinglass data shows that the last 24 hours have been brutal for crypto traders. In this short time, more than 78,000 crypto traders have seen their positions liquidated, leading to hundreds of millions of dollars in losses.
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In total, there have been $330 million in liquidations. Out of this figure, 81.42% were positions belonging to short traders, meaning they made up $268.76 million of the total figure. Long traders only made up $61.31 million in the liquidations.
Contrary to the established trend, Bitcoin did not lead liquidations this time around, instead falling behind Ethereum. This is understandable as the Ethereum price had risen over 20% in the 24-hour period, whereas the Bitcoin price maintained gains of around 6%.
Ethereum liquidations accounted for around 32% of the total figure, coming out to $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 constrast, Bitcoin liquidations came out to $96.53 million, but just like Ethereum, the figure was made up by a majority of short traders. Following behind Bitcoin is Solana with liquidations of $21.53 million. Other coins which saw substantial liquidations 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 mostly been led by Ethereum, with Bitcoin throwing in support. The United States Securities and Exchange Commission (SEC) asked exchanges to update their 19b-4 filings, which are important to any Spot ETFs being approved.
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Given this, the market sentiment had picked up as the expectation for the approval of Spot Ethereum ETFs spread. During this time, Bloomberg analysts James Seyffart and Eric Balchunas also reviewed their approval odds for the funds, taking it from a low 25% to a high 75%.
During this time, the price of Ethereum went from trending around $3,100 to rising above $3,700. At the same time, the Bitcoin price jumped above $71,000, triggering one of the best days for the crypto market so far in 2024.
Featured image from Dall.E, chart from Tradingview.com