Cryptocurrency markets experienced a sudden upheaval on October 1st, resulting in the abrupt liquidation of over $70 million in crypto short positions. This unexpected surge in the prices of Bitcoin (BTC), Ethereum (ETH), and other digital assets took many by surprise.
Data provided by TradingView reveals that Bitcoin’s price swiftly rose by 3% within a mere 15-minute span, surging from $27,100 to $28,053, eventually stabilizing just below the $28,000 threshold at the time of this report. Similarly, Ethereum’s native token, Ether, saw a substantial gain, spiking by as much as 4.7% to reach $1,755 before settling at $1,727.
This sudden market movement has left the crypto community puzzled, with various commentators speculating on its causes. Some attributed the surge to the onset of “Uptober,” a term commonly used in the crypto space to describe October as historically bullish for Bitcoin and other cryptocurrencies.
Bitcoin monthly returns since 2013. Source: Coinglass.
Historical data from CoinGlass supports this notion, showing that October has yielded negative monthly returns only twice since 2013.
Others within the community suggested that the market movement might be linked to undisclosed information, speculating that “someone knows something” that the broader market is unaware of.
One highly anticipated event in the crypto world is the potential approval of a spot Bitcoin ETF product by the United States Securities and Exchange Commission (SEC). However, most analysts are leaning toward a January 2024 timeline for such an announcement.
While those holding spot and long positions may have welcomed the notable price surge after a month of relative stagnation, short sellers experienced the opposite fate. The rapid upward trend resulted in the liquidation of approximately $70 million in short positions within just two hours.
More than $70 million worth of shorts were liquidated in the last 2 hours. Source: Coinglass
Data from Coinglass indicates that nearly $36 million worth of BTC short positions and $23 million worth of ETH short positions were “rekt” due to the abrupt and significant price movement.