Coinciding with the rise of Bitcoin (BTC), major crypto assets (virtual currencies) such as Cardano (ADA) and Ethereum (ETH) surged 7%, one of the biggest one-day gains this month.
Outside of major tokens, Bitcoin Cash (BCH) is up 15%, Stacks (STX) is up 21%, and the “Chinese Ethereum” Conflux (CFX) is up 30%.
The total cryptocurrency market capitalization has risen 5% in the past 24 hours, adding nearly $50 billion in value. According to CoinGlass, the surge triggered $125 million in short liquidations across cryptocurrency futures.
Traders shorting Bitcoin lost $54 million, followed by Ethereum, Sui (SUI) and XRP (XRP), data reveals. A short is a bet against an increase in the price of any asset.
Liquidation occurs when an exchange is forced to close a trader’s leveraged position due to a loss of some or all of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements of a leveraged position (there is not enough money to continue trading).
Expectations surrounding a US Bitcoin ETF filing by BlackRock, the world’s largest asset manager, fueled bullish sentiment among some traders last week. Some cryptocurrency experts believe that if the application is approved, there will be a large influx of funds into Bitcoin, which could lead to a further rally in the market.
“The BlackRock ETF presents a different statement or a unique ‘solution’ than previous ETF submissions,” said Eitan Katz, CEO of Kima. “It includes a surveillance sharing agreement with Nasdaq that gives Nasdaq access to transaction data, including customer IDs.”
“As many have speculated from the success rate of BlackRock’s ETF application, if the application is approved, it will give Bitcoin legitimacy and attract more investors, including corporates and high net worth individuals. ,” Katz added.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Will Ess for Pixelmind.ai/CoinDesk
｜Original: Cardano, Ether Surge as Bitcoin-Led Rally Sees Short Traders Lose $125M