Bitcoin’s Price Spike to $31K Inflicts $90M Loss on Short Sellers

The crypto market liquidated more than $100 million worth of short and long positions in the last 24 hours following a brief rise of Bitcoin to $31,000, marking its first such rise this year.

Short traders suffered badly as last week's BTC price surge dashed their expectations of further cryptocurrency price declines amidst regulatory pressures.

More than $140 million settled

According to Coinglass data, of the $141.71 million liquidated in the last 24 hours. The short positions represent $87.1 million. The largest liquidation occurred on Binance and was valued at $3 million.

Bitcoin alone accounted for $55.89 million of the total liquidations. Other cryptocurrencies like Ethereum, Bitcoin Cash, Pepe, and Litecoin also posted a considerable amount of loss for investors trading them.

While bermuda made up the bulk of liquidated positions, long positions were also substantially liquidated. Crypto assets like SUN, XRP, CFX and Doge witnessed an increased number of long positions being liquidated. This suggests that some traders have exceeded their projections of a future rise in the price of these assets.

Bitcoin ETF Applications

Over the past week, the crypto market has witnessed a new wave of institutional interest in Bitcoin. Several traditional financial institutions have submitted applications for a spot BTC ETF.

BlackRock June 15 presentation triggered a avalanche of requests from other rival companies. BlackRock is the world's largest asset manager, with more than $10 trillion in assets under management.

Since then, other asset management firms like Invesco and WisdomTree have filed new BTC ETF filings with the US Securities and Exchange Commission (SEC).

Furthermore, a cryptocurrency exchange backed by various traditional institutions such as Fidelity and Citadel Securities went live on June 20.

Monthly BTC volume above yearly average

Meanwhile, the renewed optimism surrounding the market has resulted in monthly Bitcoin transfer volume exceeding the annual average baseline for the first time since the MOON implosion, according to data from Glassnode.

The blockchain analytics firm added that this “suggests an expansion in on-chain activity, typical of improving network fundamentals and growing network utilization.”