After a surprise price surge in Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies on October 1, more than $70 million worth of crypto shorts were suddenly liquidated.
According to data from TradingView, the sudden surge sent Bitcoin up 3% from $27,100 to $28,053 in just 15 minutes before settling just below the $28,000 mark at the time of publication.
Happy October to everyone who celebrates.
Do you remember 2021? pic.twitter.com/qgHy1ThGOf
– The Wolf of All Streets (@scottmelker) October 2, 2023
Similarly, the price of Ethereum’s home currency Ether also rose, briefly rising as much as 4.7% to $1,755 before settling at $1,727 at the time of publication.
The sudden movement has left most in the community confused. Many commentators said the move was related to the arrival of “Uptober.”
Welcome to Uptober.
Welcome to Q4, which is shaping up to be a great quarter, potentially fueled by ETF approvals and the pre-halving rally.
Maybe #Bitcoin is reasonable at $40,000.
– Michaël van de Poppe (@CryptoMichNL) October 1, 2023
Other community members commented that “someone knows something” that others don’t.
Uptober is cryptocurrency jargon for October, which is typically a bullish month for the price action of Bitcoin and other cryptocurrencies. According to data from CoinGlass, October has produced negative monthly returns only twice since 2013.
Monthly Bitcoin returns since 2013. Source: Coinglass.
One of the events that the crypto market is looking forward to with optimism is the possible approval of a spot Bitcoin ETF product by the US Securities and Exchange Commission. However, most analysts believe January 2024 is the most likely date for such an announcement.
Related: Will Bitcoin “Uptober” Bring Profits for MKR, AAVE, RUNE and INJ?
While those holding spot and long positions may have celebrated the first significant price movement in over a month, short sellers had the opposite luck.
The rapid rise resulted in $70 million worth of short positions being liquidated in just two hours.
Over $70 million worth of short sales were liquidated in the last two hours. Source: Coinglass
According to data from Coinglass, nearly $36 million worth of BTC shorts and $23 million worth of ETH shorts were “rectified” by the sudden price movement.
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