Sudden Bitcoin, Ethereum Pump Takes Out $70M in Shorts

Bitcoin Bullrun Changpeng

The crypto market witnessed a sudden and dramatic surge on October 1st, with both Bitcoin and Ether prices skyrocketing by almost 4% within a mere 15-minute time frame. This unexpected bullish rally, which caught many by surprise, has ignited optimistic speculations for the month of October.

During this remarkable upswing, more than $70 million in cryptocurrency short positions were swiftly liquidated. 

Bitcoin, in particular, demonstrated its volatility by surging 3% in just 15 minutes, escalating from $27,100 to $28,053 before steadying slightly below the $28,000 threshold as of the time of this report. In tandem, Ethereum’s native token, Ether, experienced an impressive 4.7% spike, briefly hitting $1,755 before settling at $1,727.

This unforeseen market activity has left observers puzzled. Some suggest it’s in alignment with the arrival of “Uptober,” a term in the crypto world signifying the historically bullish performance of Bitcoin and other cryptocurrencies in October. 

Remarkably, since 2013, October has only recorded negative monthly returns twice. However, the crypto community remains cautious about celebrating too soon, as the potential approval of a spot Bitcoin exchange-traded fund by the U.S. Securities and Exchange Commission, a highly anticipated event, is most likely to be announced in January 2024, according to analysts.

While this surge brought joy to spot and long position holders, it spelled misfortune for short sellers. 

In just two hours, the rapid uptick resulted in the liquidation of around $70 million worth of short positions, with approximately $36 million in BTC shorts and $23 million in ETH shorts getting “rekt” due to the unexpected price surge.