Sudden Bitcoin price jump triggers US$70 million in crypto short liquidations

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2nd October 2023 – (New York) In a surprising turn of events, the price of Bitcoin (BTC) and other cryptocurrencies experienced a sudden spike on 1st October, resulting in the liquidation of over $70 million in crypto shorts. According to data from TradingView, Bitcoin witnessed a rapid surge of 3% within a mere 15 minutes, climbing from $27,100 to $28,053 before stabilizing just below the $28,000 mark at the time of reporting.

The price of Ethereum’s native currency, Ether (ETH), followed a similar trajectory, surging by as much as 4.7% during a brief spike to $1,755 before eventually settling at $1,727.

This unexpected movement has left the crypto community puzzled, with many commentators speculating that it could be attributed to the arrival of what is commonly referred to as “Uptober.” Market participants often associate October with a bullish period for Bitcoin and other cryptocurrencies. Historical data from CoinGlass reveals that since 2013, October has only recorded negative monthly returns twice.

One theory circulating within the community is that certain individuals might possess insider knowledge, hence the sudden price surge. However, such claims remain speculative and unsubstantiated.

Amidst the speculation, one event that the crypto market eagerly anticipates is the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC). While many analysts believe that the announcement regarding the approval of a Bitcoin ETF is more likely to occur in January 2024, the exact timeline remains uncertain.

While holders of spot and long positions rejoiced at the significant price action, short sellers faced unfortunate consequences. The rapid uptick in prices led to the liquidation of more than $70 million worth of short positions within a span of just two hours.

Data from CoinGlass reveals that approximately $36 million worth of BTC shorts and $23 million worth of ETH shorts were “rekt” (liquidated) due to the sudden price move.