BTC, ETH surged thanks to another wave of short liquidations

Bitcoin and Ethereum experienced another wave of short liquidations, boosting the bullish momentum of both assets.

According to data from Coinglass, total crypto liquidations amounted to $138.23 million, with bullish sentiment currently prevailing in the market. Of the total liquidations, more than $95 million came from short positions, which represents 71% of the liquidations, showing that short traders were significantly caught off guard as prices continued to rise.

Increased short liquidations typically lead to buying pressure, driving up prices further.

Ethereum (ETH) is currently leading with $27.69 million in total liquidations, including $23.84 million from shorts and $3.85 million from long positions. ETH gained 3.1% over the past 24 hours, trading at $2,730 at the time of writing. The daily trading volume surged by 117%, reaching $17.4 billion, reflecting growing investor interest.

The largest liquidation order was executed on Binance, the world’s largest crypto exchange by trading volume, worth $6.64 million in the ETH/USDT pair.

Bitcoin (BTC) comes second with $25 million in liquidations—$21 million from shorts and $4 million from longs. This liquidations caused Bitcoin to hit a four-month high of $69,460 earlier today. Although there has been a slight correction, Bitcoin is still up 0.45% over the past 24 hours and is trading at $68,700 at the time of writing. Bitcoin’s daily trading volume has increased by 74%, reaching $24 billion.

The global crypto market cap has reached a three-month high of $2.49 trillion, as most leading altcoins also experience bullish gains, according to data from CoinGecko.

If long positions start to liquidate, this could create selling pressure, potentially causing a price dip as traders attempt to minimize their losses.