Bitcoin Surges Over $71K as Ether ETF Hopes Lead to $260M in Short Liquidations
Bitcoin Hits $71K: ETF Speculation Sparks Rally?
Bitcoin's price soared over $71,000, its highest since early April, fueled by optimism over a potential U.S.-listed spot Ether ETF, which saw its approval odds jump to 75%. This surge in the crypto market led to massive short liquidations totaling $260 million. Ether also saw significant gains, rising over 19% to $3,700, with expectations it could hit $4,000 soon if the ETF is approved. Other major cryptocurrencies posted smaller gains amid this bullish market sentiment.
What are the new estimated odds for the approval of a spot Ether ETF according to Bloomberg analysts?
The new estimated odds for the approval of a spot Ether ETF, as stated by Bloomberg analysts Eric Balchunas and James Seyffart, are raised to 75% from the previous 25%. This shift in the estimated probability has significantly boosted the market sentiment and has led to a surge in the price of Ether. The anticipation of a spot Ether ETF has driven the crypto market higher, causing over $260 million in market-wide short liquidations. Market participants view the approval of an Ether ETF as a bullish event, potentially opening the floodgates to institutional capital.
How much money in total was liquidated from short positions across the cryptocurrency market recently?
Recently, over $260 million was liquidated from short positions across the cryptocurrency market. This significant amount of liquidations occurred as the market experienced a sharp increase in prices, particularly with Bitcoin surging over $71,000 and Ether reaching over $3,700. This market movement was largely driven by renewed hopes for the approval of U.S.-listed Ether ETFs, which Bloomberg analysts now believe has a 75% chance of approval. The liquidations primarily affected those who had bet against these rising prices, with Ether shorts losing over $115 million and Bitcoin shorts just over $99 million.