Bitcoin (BTC) surged dramatically in the past day, reaching within $2,000 of its all-time high of $73,750. This sudden surge followed a quiet period for the cryptocurrency, which had been hovering around $67,000.
BTC skyrocketed past $71,000 on Tuesday, reaching its highest level since early April. This surge coincided with a near 20% jump in Ethereum (ETH) to $3,700, fueled by renewed optimism for a US-approved Ether ETF.
Source: CoinMarketCap
The combined market capitalization of all cryptocurrencies jumped by roughly $200 billion in a single day. This volatility, however, resulted in significant losses for over-leveraged traders. Over the past 24 hours, nearly 80,000 traders have been liquidated, with a total value of wrecked positions exceeding $340 million.
This sudden price movement resulted in over $260 million in short liquidations across major crypto exchanges, the highest since February. Ether shorts, particularly vulnerable in this rally, saw over $115 million liquidated.
The news of the SEC requesting updates to ETF filings ahead of a key deadline further bolstered market sentiment. Investors see an Ether ETF as a catalyst for institutional investment, similar to the impact of the Bitcoin ETF launched in January.
With the potential for ETF approval looming, some traders anticipate further price increases for ETH. Singapore-based QCP Capital predicts a potential rise towards $4,000 if approved, while a rejection could see prices dip back to $3,000.
