BTC, ETH surged thanks to another wave of short liquidations

Bitcoin and Ethereum witnessed yet another phase of short-term liquidations, bringing bullish momentum to the assets.

According to data provided by Coinglass, total crypto liquidations reached $138.23 million as the bullish trend dominated the market. More than $95 million of this amount was liquidated from short positions, indicating a 71% dominance over long positions.

Crypto liquidations map – October 21 | Source: Coinglass

Increased short liquidations often create buying pressure.

Ethereum (ETH) tops the list with liquidation of $27.69 million ($23.84 million short position and $3.85 million long position). ETH is up 3.1% in the last 24 hours and is trading at $2,730 at the time of writing.

As investor interest increased, daily trading volume increased by 117%, reaching $17.4 billion.

Notably, the largest single liquidation order was executed on Binance, the largest crypto exchange by trading volume, and was worth $6.64 million in the ETH/USDT pair.

Bitcoin (BTC) comes in second with $25 million in liquidations ($21 million short and $4 million long). This caused the BTC price to hit a four-month high of $69,460 earlier today. Despite the recent correction, Bitcoin is still up 0.45% over the past day and is changing hands at $68,700 at the time of the report.

The flagship crypto asset has seen a 74% increase in daily trading volume and has now reached $24 billion.

Global crypto market capitalization also reached a three-month high of $2.49 trillion, as the majority of leading altcoins posted bullish gains, according to data from CoinGecko.

If long positions begin to liquidate, this could potentially create significant selling pressure as investors attempt to minimize their losses.