On October 1, more than $70 million in cryptocurrency short positions were suddenly liquidated after unexpected price increases for Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.
The sudden surge saw Bitcoin surge from $27,100 to $28,053 in just 15 minutes before falling to just under $28,000 at the time of publication, according to TradingView data.
Happy to those celebrating.
Remember 2021? pic.twitter.com/qgHy1ThGOf
— Wolf on the Street (@scottmelker) October 2, 2023
Likewise, the price of Ethereum’s native currency, Ethereum, also surged, briefly rising 4.7% to $1,755 before falling back to $1,727 at the time of publication.
The sudden move left most in the community scratching their heads. Many commentators said the move was consistent with the arrival of “Uptober.”
Welcome to Uptober.
Welcome to Q4, set for an excellent quarter driven by ETF approvals and the potential for a pre-halving rally.
potentially #bitcoin $40,000 is reasonable.
— Michael van der Poppe (@CryptoMichNL) October 1, 2023
Other community members suggested that “someone knows something that other people don’t know.”
Uptober is the crypto term for October, which is typically a month with bullish price action for Bitcoin and other cryptocurrencies. According to data from CoinGlass, there have been only two negative monthly returns in October since 2013.
One of the events that the cryptocurrency market is optimistically anticipating is the possible approval of a spot Bitcoin ETF product by the U.S. Securities and Exchange Commission. However, most analysts believe January 2024 is the most likely year for such an announcement.
related: Will Bitcoin “Uptober” Benefit MKR, AAVE, RUNE, and INJ?
Meanwhile, while those holding spot and long positions may have celebrated the first major price action in more than a month, short sellers had the opposite luck.
In just two hours, short positions surged and $70 million worth was liquidated.
Data from Coinglass shows that nearly $36 million worth of BTC shorts and $23 million worth of ETH shorts “disappeared” due to sudden price fluctuations.
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