Crypto Price Surge Sparks $70M Liquidation of Shorts, Celebrates "Uptober" Arrival
Summary:
On October 1, over $70 million in crypto shorts were liquidated during a surprise surge in the price of cryptocurrencies, including Bitcoin and Ethereum. The abrupt price jump, which left many in the crypto community puzzled and was attributed by many to "Uptober," a term used to describe October's typically bullish price action in the market. However, the sudden spike negatively impacted short sellers, leading to substantial losses.
A sudden rise in the prices of Bitcoin (BTC), Ethereum (ETH) and various other cryptocurrencies on October 1 led to the abrupt liquidation of more than $70 million in crypto shorts. TradingView data reveals a sudden 3% increase, within 15 minutes, in Bitcoin's price - jumping from $27,100 to $28,053 before eventually settling just under the $28,000 mark at the time of the reported incident.
Ethereum's Ether witnessed a similar trend as its price soared by 4.7%, reaching $1,755 briefly before it descended to rest at $1,727 during press time. The unexpected shift has left many members of the crypto community puzzled, with some attributing it to the arrival of "Uptober".
In cryptocurrency parlance, "Uptober" signifies October as a typically bullish period for the price performance of Bitcoin and other cryptocurrencies. As per CoinGlass data, only twice since 2013 has October yielded negative monthly returns. Some community members even speculated about a plausible "inside information" circulating. One of the positive factors the crypto market anticipates is the possible endorsement of a spot Bitcoin ETF product by the US Securities and Exchange Commission, though most estimates point towards January 2024 as a likely announcement date.
However, the sudden price hike hasn't fared well for everyone. Short sellers, for instance, suffered a setback as the swift price elevation led to the liquidation of $70 million in short positions within two hours. Coinglass data reveals that approximately $36 million worth of BTC shorts and $23 million of ETH shorts were "rekt" (cryptocurrency slang for a severe loss) due to the abrupt price surge.
Published At
10/2/2023 12:29:41 AM
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