Coinspeaker Bitcoin Price Above 28,000 and Ether Above $1700 Wiping $70M in Shorts
On October 1, the crypto market witnessed spectacular price increases, with Bitcoin (BTC) exceeding $28,000 and Ethereum (ETH) surging past $1,700, prompting more than $70 million in short positions to be liquidated in a matter of minutes.
The Surprising Bitcoin Price Pump
According to data from TradingView, the crypto market’s upheaval began when Bitcoin surged by a significant 3% in a mere 15-minute window. This sudden price hike propelled Bitcoin from $27,100 to $28,053 before eventually stabilizing just below the $28,000 mark at the time of writing. Simultaneously, Ethereum followed suit, experiencing a surge of up to 4.7%, briefly reaching $1,755 before settling at $1,727.
The swift and dramatic movement caught many traders and analysts off guard, prompting questions about its origins and possible explanations. The crypto community quickly began to speculate about the driving forces behind this unexpected bullish trend.
One prevailing theory among crypto enthusiasts is that this abrupt price rally coincided with the advent of “Uptober.” While not an officially recognized term, “Uptober” has become a familiar term among crypto traders, representing the historical trend of October being a bullish month for cryptocurrencies. Since 2013, October has rarely disappointed crypto enthusiasts, with only two instances of negative returns.
Another factor fueling optimism in the crypto community is the anticipation of the approval of a spot Bitcoin Exchange-Traded Fund (ETF) by the US Securities and Exchange Commission (SEC).
Such an ETF would open the doors for institutional investors to participate in the crypto market more easily, potentially bringing a flood of new capital and legitimacy to the space. While hopes are high for this development, analysts are cautious, suggesting that January 2024 is the most likely time frame for the SEC to make a decision.
In a different but related situation, the US government recently avoided a potential shutdown. This political stability is critical not just for the country’s economic landscape, but also for the crypto market. With the government operational, crucial conversations for the approval of an ETF may continue uninterrupted.
A recent report from Coindesk has revealed that the surge in BTC and ETH prices may have been influenced by short liquidations on crypto-tracked futures, resulting in a “short squeeze” scenario.
Short-Sellers Dilemma
While the recent price surge brought joy to long-term investors and HODLers, short sellers are notably facing a different fate. The rapid uptick in prices resulted in the liquidation of $70 million worth of short positions within just two hours, according to data from CoinGlass. This sudden and sharp movement left short sellers with significant losses.
Approximately $36 million in Bitcoin shorts and $23 million in Ethereum shorts were “rekt” (crypto terminology for forced liquidation) by the sudden price spike. This underscores the crypto market’s intrinsic volatility and the possible hazards that traders, particularly those with short holdings, face in the advent of unprecedented price swings.
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Bitcoin Price Above 28,000 and Ether Above $1700 Wiping $70M in Shorts
