The price of Bitcoin, Ethereum, and other cryptocurrencies experienced a sudden spike on October 1, leading to the liquidation of over $70 million in crypto shorts. Bitcoin surged by 3% in just 15 minutes, reaching $28,053 before settling slightly below $28,000. Similarly, Ethereum’s native currency Ether saw a brief spike, gaining 4.7% to $1,755 before stabilizing at $1,727. The unexpected movement has left many in the community confused, with some attributing it to the arrival of “Uptober,” a term used to describe the historically bullish month of October for cryptocurrency prices.
Speculation among community members suggests that someone may have insider knowledge, leading to the sudden price jump. CoinGlass data shows that October has only produced negative monthly returns twice since 2013, adding to the optimism surrounding this month’s price action. One event the crypto market is eagerly anticipating is the potential approval of a spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC). However, analysts believe that January 2024 is the most probable announcement date for such approval.
While spot and long positions may have benefited from the price surge, short sellers experienced significant losses. Within just two hours, more than $70 million worth of short positions were liquidated. Coinglass data reveals that approximately $36 million worth of BTC shorts and $23 million worth of ETH shorts were “rekt” (liquidated) due to the sudden price movement. Despite the losses for short sellers, the overall market sentiment remains positive due to the potential for further gains in the cryptocurrency market.
