The Crypto Market Sees $330 Million in Liquidations as Prices Surge

The recent surge in Bitcoin and Ethereum prices has led to short-term traders facing significant liquidations. Over the past 24 hours, more than $330 million has been liquidated from the crypto market, with the majority of these liquidations coming from short traders expecting prices to fall. This has resulted in over 78,000 crypto traders seeing their positions liquidated, translating to hundreds of millions of dollars in losses.

Surprisingly, it was Ethereum and not Bitcoin that led the liquidations this time around. With Ethereum prices rising over 20% in a 24-hour period, it accounted for around 32% of the total liquidations, amounting to $105.13 million. The largest single liquidation event occurred on an ETH-USDT pair on the Huobi exchange, totaling $3.11 million. In contrast, Bitcoin liquidations amounted to $96.53 million, with the majority of them also coming from short traders.

Apart from Bitcoin and Ethereum, other coins such as Solana, Dogecoin, and PEPE also saw substantial liquidations. Solana experienced liquidations of $21.53 million, while Dogecoin and PEPE saw liquidations of $7.42 million and $4.3 million, respectively. The market rally, primarily led by Ethereum with support from Bitcoin, triggered a wave of liquidations that affected a wide range of cryptocurrencies.

The United States Securities and Exchange Commission (SEC) recently requested exchanges to update their 19b-4 filings, crucial for the approval of Spot ETFs. This news boosted market sentiment, as expectations for the approval of Spot Ethereum ETFs spread. Bloomberg analysts James Seyffart and Eric Balchunas revised their approval odds for the funds from a low 25% to a high 75%. This positive sentiment led to Ethereum prices jumping from around $3,100 to over $3,700, while Bitcoin prices surged above $71,000.

The recent surge in crypto prices has brought both gains and losses for traders, with short traders bearing the brunt of liquidations. Ethereum, in particular, played a significant role in the market rally, with other coins also experiencing the impact of the price surge. The upcoming decision on Spot ETFs by the SEC is likely to further influence market sentiment and prices in the coming days.