BTC and ETH Surge Amid Wave of Short Liquidations

Bitcoin and Ethereum experienced a significant boost as a new wave of short liquidations swept through the market, generating bullish momentum for both cryptocurrencies.

According to data from Coinglass, total liquidations in the crypto market reached $138.23 million, with more than $95 million coming from short positions, accounting for 71% of the total. This trend of increased short liquidations typically creates added buying pressure, further fueling price increases.

Ethereum led the charge, with liquidations totaling $27.69 million—comprising $23.84 million in short positions and $3.85 million in long positions. Over the past 24 hours, ETH gained 3.1%, trading at $2,730 at the time of writing. The daily trading volume for Ethereum surged by 117%, reaching $17.4 billion as investor interest continued to rise.

Notably, the largest single liquidation order occurred on Binance, the leading crypto exchange, amounting to $6.64 million in the ETH/USDT trading pair.

Bitcoin followed closely behind, with $25 million in liquidations—$21 million from shorts and $4 million from longs. This activity propelled Bitcoin's price to a four-month high of $69,460 earlier today. Despite a slight correction, BTC remains up 0.45% over the past day, currently trading at $68,700.

Bitcoin’s daily trading volume saw a remarkable increase of 74%, now at $24 billion, contributing to a global crypto market cap that has reached a three-month high of $2.49 trillion. Most leading altcoins also recorded bullish gains during this period, according to CoinGecko.

However, if long positions begin to liquidate, it could create substantial selling pressure as traders seek to limit their losses. The ongoing market dynamics reflect a volatile yet promising landscape for cryptocurrency investors.