The whole cryptocurrency market witnessed over $133 million in liquidated short positions.
The year 2024 got off to a great start with Bitcoin’s price rising beyond $45.5K today.
As optimism grows that the U.S.-based spot bitcoin ETFs will soon get regulatory clearance, the price of bitcoin momentarily climbed above $45,500 in the last 24 hours.
Centralized exchanges saw a large liquidation of short positions due to the recent price surge. The bulk of the more than $81 million in bitcoin positions were liquidated as a consequence of the volatility. Around $73.2 million were short positions.
According to CoinGlass statistics, the whole cryptocurrency market witnessed over $133 million in liquidated short positions on the previous day, which added to a total of $177 million in liquidations across several centralized exchanges.
Liquidations occur in the derivatives markets when a trader’s position is liquidated forcefully. Because there aren’t enough funds to pay losses. In this case, the trader’s original margin or collateral is depleted due to unfavorable market moves.
Investors Optimistic
The present rising surge in the overall cryptocurrency market might be triggered by expectations that the U.S. SEC would approve several spot bitcoin ETFs. Reuters reported over the weekend that the SEC may start informing ETF applicants about the status of their applications’ clearance as early as Tuesday.
The year 2024 got off to a great start with Bitcoin’s price rising beyond $45.5K today. Present market sentiment in cryptocurrencies is bullish, suggesting that this trend will likely continue. Also, in a few months, Bitcoin will undergo a halving, which is anticipated to have far-reaching consequences.
Several analysts have cautioned of a potential market drop after ETF approval, so it will be intriguing to see how Bitcoin responds to regulatory developments in the coming days.