The cryptocurrency market surprisingly experienced a sudden and unexpected price increase on October 1, causing over $70 million worth of crypto short sellers to be liquidated. Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market cap, have experienced significant price jumps, leaving many in the community confused and speculating about the reasons behind this sudden rise. Here are the details…
Bitcoin rose to $28,000 in minutes
According to data from TradingView, Bitcoin’s price rose 3% from $27,100 to $28,053 in just 15 minutes and is sitting just above $28,000 at the time of publication. A similar situation was observed in Ethereum. Local currency Ether rose as much as 4.7% to $1,755 before settling at $1,727. The suddenness of these price movements caught many market participants off guard. Some analysts and commentators attributed this increase to the arrival of what they playfully called “Uptober.” Uptober is a term used in the crypto community to describe the historical trend of October being a bullish month for the prices of Bitcoin and other cryptocurrencies.
Welcome to Uptober.
Welcome to Q4, which is leading towards a great quarter, potentially fueled by ETF approvals and the pre-halving rally.
Potentially #Bitcoin to $40,000 is reasonable.
— Michaël van de Poppe (@CryptoMichNL) October 1, 2023
Data from CoinGlass shows that October has recorded negative monthly returns only twice since 2013. A major event generating optimism in the crypto market is the potential approval of a spot Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC). However, most analysts are leaning toward January 2024 as the likely timeframe for such an announcement. While spot and long investors celebrated the first significant price movement in more than a month, short sellers faced a completely different reality. The rapid increase in prices led to the liquidation of more than $70 million in short positions in just two hours.
Short selling traders were liquidated
Data from Coinglass reveals that approximately $36 million worth of BTC short selling and $23 million worth of ETH short selling were “rekt” (a term often used in crypto jargon to describe the liquidation of positions due to market movements) due to this unexpected price increase. The sudden and sharp movements in the market on October 1 left many questions unanswered. It is not yet known whether this rise is a harbinger of an upward trend that will continue throughout October or just a momentary anomaly. While crypto enthusiasts and investors continue to monitor the markets, one thing is clear: the cryptocurrency space is as unpredictable as ever, keeping traders and analysts on alert.
Happy Uptober to those who celebrate.
Remember 2021? pic.twitter.com/qgHy1ThGOf
— The Wolf Of All Streets (@scottmelker) October 2, 2023
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