While Bitcoin and Ethereum prices have soared to new all-time highs, short-term traders have borne the brunt of the liquidations. More than $330 million was liquidated from the crypto market on the last day alone, with the majority of this coming from short traders who expect prices to drop again.
More than 78,000 traders liquidated for $330 million
Coin glass data shows that the past 24 hours have been brutal for crypto traders. In this short time, more than 78,000 crypto traders have seen their positions liquidated, resulting in hundreds of millions of dollars in losses.
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In total, there have been $330 million in liquidations. Of this figure, 81.42% were positions held by short traders, meaning they made up $268.76 million of the total figure. Long traders made just $61.31 million from the liquidations.
Contrary to the established trend, Bitcoin did not lead to liquidations this time, but lagged behind Ethereum. This is understandable as the Ethereum price was up over 20% in the 24-hour period, while the Bitcoin price maintained a gain of around 6%.
Ethereum liquidations accounted for around 32% of the total amount, reaching $105.13 million at the time of writing. The largest liquidation event also occurred on an ETH-USDT pair on the Huobi exchange, costing the trader $3.11 million.
In contrast, Bitcoin liquidations totaled $96.53 million, but as with Ethereum, this figure was taken by a majority of short traders. After Bitcoin, Solana follows with liquidations worth $21.53 million. Other coins that 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 shook the market over the past day was largely led by Ethereum, with Bitcoin providing support. The US Securities and Exchange Commission (SEC) asked exchanges to update their 19b-4 filings, which are important for any Spot ETFs that are approved.
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Considering this fact, market sentiment had increased as an expectation for the approval of Discover Ethereum ETFs scatter. During this time, Bloomberg analysts James Seyffart and Eric Balchunas also rated their approval chances for the funds, from a low 25% to a high 75%.
During this time, Ethereum’s price rose from around $3,100 to soaring above $3,700. At the same time, the Bitcoin price rose above $71,000, leading to one of the best days for the crypto market so far in 2024.
Featured image of Dall.E, chart from Tradingview.com