The current recovery in Bitcoin (BTC) prices has triggered another round of liquidations in the industry. Current data from CoinGlass shows a shift in short traders, with market liquidations of $311.83 million and an overall number of liquidations exceeding 90,000 traders.
As of this writing, Bitcoin is trading at $66,969.92, up more than 6% in the past 24 hours. Recording this kind of gain is a significant boost for the digital currency, which traded as low as $62,082.55 at one point, but the move did not benefit short sellers.
$98.99 million worth of Bitcoin was liquidated in the past 24 hours, with short selling worth $65 million and long liquidations worth $33.99 million. Ethereum (ETH) followed closely behind as the second-most liquidated asset, with $86.4 million worth of tokens liquidated. For Ethereum, short traders were liquidated $48.27 million, while long traders suffered liquidations totaling $38.13 million. The ETH liquidations can be explained considering the alleged investigation into the Ethereum Foundation. The knee-jerk reaction and subsequent recovery helped Ethereum grow 13% to $3,526.98, signaling the cause of the recent spark of liquidations. Markets in Undefined Mode The digital currency ecosystem is at a tipping point.
While the past week’s correction is generally considered healthy for the industry as a whole, it is unclear whether the current price rally marks the beginning of another all-time high for Bitcoin and other altcoins. Industry leaders are holding on to Ethereum despite the obvious woes and uncertainty surrounding the potential approval of its proposed spot ETH ETF product due to its potential securities classification. All in all, investors are holding on to core building fundamentals such as the Decun upgrade, which could help drive measurable growth over the long term.$BTC
