The cryptocurrency market liquidated over $100 million worth of short and long positions in the past 24 hours following Bitcoin’s rapid surge to $31,000, marking the first significant increase of the year.
Short traders suffered significant losses as the soaring BTC price over the past week shattered their expectations of further decline amidst legal pressures.
According to Coinglass data, out of the total liquidation of 141.71 million USD in the past 24 hours, short positions accounted for 87.1 million USD. The largest liquidation order occurred on Binance and was valued at 3 million USD.
Bitcoin alone accounted for $55.89 million in total liquidations. Other cryptocurrencies such as Ethereum, Bitcoin Cash, Pepe, and Litecoin also experienced significant losses for traders involved in their trading.
Over the past week, the cryptocurrency market has witnessed a new wave of institutional interest in Bitcoin. Several traditional financial institutions have filed applications for spot BTC ETF registration.
BlackRock’s filing on June 15 opened the door for a series of options by competing companies. As the world’s largest asset management firm, BlackRock manages over $10 trillion in assets.
Since then, other asset management companies such as Invesco and WisdomTree have submitted new BTC ETF filings to the U.S. Securities and Exchange Commission (SEC).
Furthermore, a cryptocurrency exchange backed by traditional institutions such as Fidelity and Citadel Securities was launched on June 20th.
Meanwhile, the recent price surge has resulted in the monthly Bitcoin transaction volume surpassing the annual average baseline for the first time since the collapse of LUNA, according to data from Glassnode.
The blockchain analytics company further stated that this “suggests an expansion of on-chain activity, typically indicative of improving network fundamentals and increased network utilization.”