Bitcoin and Ethereum witnessed an unexpected surge of nearly 4% in a 15-minute window, leading to the liquidation of over $70 million in crypto shorts. The sudden pump, which coincided with the beginning of "Uptober," sparked bullish predictions for October. While the crypto community speculates about potential factors behind the surge, the market is anticipating positive developments, including the potential approval of a spot Bitcoin ETF by the U.S. SEC. The rapid uptick resulted in significant short liquidations, highlighting the volatility in the market.
Bitcoin and Ethereum Witness Sudden Surge, Triggering Over $70M in Short Liquidations
In a surprising turn of events, Bitcoin and Ethereum experienced a sudden surge, with Bitcoin surging 3% in just 15 minutes from $27,100 to $28,053. Ethereum's native currency Ether also saw a spike, gaining as much as 4.7% to $1,755. This unexpected pump resulted in the liquidation of over $70 million in crypto shorts within a two-hour period.
The market's response to the abrupt movement has led to various speculations within the crypto community. Some attribute the surge to the beginning of "Uptober," a term used in the crypto space to signify October as a traditionally bullish month for Bitcoin and other cryptocurrencies. Historical data shows that October has produced negative monthly returns only twice since 2013.
While the community discusses potential factors influencing the market, one prevailing sentiment is that "someone knows something" that others are not aware of. Analysts are closely watching for positive developments, including the potential approval of a spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC). However, the consensus is that such an announcement may be more likely in January 2024.
While spot and long position holders celebrated the significant price action, short sellers faced substantial liquidations. Approximately $36 million worth of Bitcoin shorts were liquidated, highlighting the rapid and volatile nature of the market.
As the crypto market heads into October, the surge in prices has fueled optimism and speculation about the potential factors that could drive further market movements throughout the month.
(TOM MITCHELHILL, COINTELEGRAPH, 2023)