• Bitcoin and Ethereum’s latest price surge has ravaged short traders across the crypto market, resulting in over $297 million worth of liquidations for shorts.
• The surge was fueled by speculation that the SEC will approve Ethereum spot ETFs this week, potentially bringing a wave of institutional demand for ETH.
• A Glassnode analyst predicted that Bitcoin and crypto may be at “ground zero for a second wave of ETF demand” and that short traders are “swimming against the tide.”
The latest price increases for Bitcoin and Ethereum have resulted in major losses for short traders across the crypto market. Over $300 million worth of liquidations have impacted shorts in the past day.
Massive Liquidations Ravage Shorts
According to CoinGlass, over $383 million in crypto liquidations have occurred within the past 24 hours. Of those, $297 million worth impacted shorts, affecting over 94,000 traders. The largest single liquidation was worth $426 million.
Ethereum traders took the biggest hit, with $131 million in losses compared to Bitcoin’s $108 million. Ethereum also saw a steeper 22% price increase over the past day versus Bitcoin’s 16% jump.
Monday’s Bullish SEC News Shocked Markets
Markets were hit by positive news on Monday when the SEC began reviewing Ethereum spot ETF applications from major financial institutions. Approval could allow large investors to gain exposure to Ethereum similar to existing Bitcoin ETFs.
Bloomberg and Standard Chartered now estimate high odds for ETF approval this month. The potential wave of new demand has Ethereum bulls excited.
Second Wave of ETF Demand May Be Coming
According to Glassnode’s James Check, Bitcoin and crypto may now see a second rush of ETF investment. He wrote that traders betting against this trend with leverage are “swimming against the tide.”
Many still think the Bitcoin and crypto boom needs to end, but strong gains may continue amid new regulated investment products.
Conclusion
Shorts were decimated by the latest crypto surge, but some believe there is more room to run. New ETF approvals could bring another wave of demand and extended upside for Bitcoin and Ethereum prices.
