Many commentators said the move aligned with the arrival of “Uptober”
Over $70 million in crypto shorts were suddenly liquidated following a surprise jump in the price of Bitcoin, Ethereum and other crypto currencies on October 1.
As per data from TradingView, the sudden rush saw Bitcoin soar 3% in just 15 minutes from $27,100 to $28,053 before settling down just below the $28,000 level at one time.
Likewise, the price of Ethereum’s native currency Ether also soared, adding as much as 4.7% in a brief rise to $1,755 before levelling out to $1,727 at one point.
The sudden movement has left most in the community perplexed. Many commentators said the move aligned with the arrival of “Uptober.”
Uptober is crypto parlance for October typically being a bullish month for the price action of Bitcoin and other crypto currencies. As per data from CoinGlass, October has only produced negative monthly returns twice since 2013.
One of the events that the crypto market is looking to with hope is the potential approval of a spot Bitcoin exchange-traded fund (ETF) product by the US SEC. Nevertheless, most experts are tipping January 2024 as the most likely date for such an announcement.
In the meantime, while those holding spot and long positions may have celebrated the first significant price action in more than a month, short sellers have had the opposite luck.
The quick rise saw $70 million in short positions liquidated in just two hours.
As per data from Coinglass, around $36 million worth of bitcoin shorts and $23 million worth of ethereum shorts were “rekt” by the sudden price move.