As Bitcoin and Ethereum prices soared to all-time highs, short-term traders were hit hard by liquidations. In the last day alone, more than $330 million was liquidated from the cryptocurrency market, most of which came from short-term traders who expected prices to fall once again.
Over 78,000 traders were liquidated for $330 million.
The last 24 hours have been brutal for cryptocurrency traders, according to Coinglass data. In this short period of time, over 78,000 cryptocurrency traders suffered hundreds of millions of dollars in losses as their positions were liquidated.
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Total liquidation amounted to $330 million. Of this figure, 81.42% were positions belonging to short-term traders, accounting for $268.76 million of the total. Long traders only pocketed $61.31 million in liquidation.
Contrary to established trends, Bitcoin did not lead liquidations this time, but instead lagged behind Ethereum. This is understandable because the price of Ethereum rose by more than 20% in 24 hours, while the price of Bitcoin remained elevated by about 6%.
Ethereum liquidations account for approximately 32% of the total amount, amounting to $105.13 million at the time of this writing. The largest single liquidation event also occurred on the ETH-USDT pair on the Huobi exchange, costing traders $3.11 million.
In comparison, Bitcoin liquidation came out to $96.53 million, but like Ethereum, the majority of short-term traders made up this figure. Bitcoin was followed by Solana, which liquidated $21.53 million. Other coins that saw significant liquidations included Dogecoin at $7.42 million and PEPE at $4.3 million.
Bitcoin and Ethereum lead the market rally.
The recent market rally that shook the market was mostly led by Ethereum, with Bitcoin providing support. The U.S. Securities and Exchange Commission (SEC) has asked exchanges to update their 19b-4 filings, which are critical to approving spot ETFs.
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Given this, market sentiment rose as expectations for the approval of the Spot Ethereum ETF spread. During this period, Bloomberg analysts James Seyffart and Eric Balchunas also reviewed the odds of approval for the fund, rating it from a low of 25% to a high of 75%.
During this period, the price of Ethereum rose from around $3,100 to over $3,700. At the same time, the price of Bitcoin surged above $71,000, making it one of the best days for the cryptocurrency market so far in 2024.
Featured image from Dall.E, chart from Tradingview.com