In the past 24 hours, more than $1 billion in crypto short positions were liquidated. The primary reason is the rapid price rise of Bitcoin, which caught many traders off guard.
Short Liquidations in the Crypto Market
According to data from Coinglass, short liquidations amounted to $1.02 billion in 24 hours. Most of these liquidations occurred among traders betting against Bitcoin, which was experiencing significant price growth. The leading cause of liquidation was Bitcoin futures, accounting for $590 million, while Ethereum futures caused losses of $241 million. Approximately 237,000 traders were liquidated, with nearly 90% expecting a market drop that did not happen.
Growing Demand for Bitcoin ETF
Bitcoin reached a new all-time high above $118,000, driven by increasing demand for spot ETFs. Over $15 billion has flowed into these products since their launch. For example, BlackRock's IBIT ETF now holds over 700,000 BTC, and its rising revenue competes with the company's largest legacy offerings. This is contributing to price stability and may continue to support Bitcoin through the summer.
Altcoin Dynamics
Ethereum is also making headlines, surpassing Bitcoin in 24-hour futures volume. Growing expectations for a spot ETH ETF approval may lead to renewed interest. XRP jumped above $2.57, DOGE crossed $0.19, and Solana posted a 5% gain. This widespread optimism in the market indicates a potential rotation of liquidity from Bitcoin into altcoins.
The liquidations in the past 24 hours in the crypto market, along with the rising demand for Bitcoin and the positive dynamics of altcoins, reflect a shift in trader sentiment and possibilities for future investments.
