Recent optimism about the potential approval of U.S.-based spot bitcoin ETFs has fueled a surge in bitcoin’s price, which briefly surpassed $45,500 in the last 24 hours.
Significant liquidations occurred in the market, particularly in short positions, totaling over $135 million across various centralized exchanges.
Over $82 million in Bitcoin positions were liquidated on centralized exchanges, with around $74 million being short positions.
In the crypto market, liquidations occur when traders’ positions are forced to close due to a lack of funds to cover losses, depleting their original margin or collateral.
According to CoinGlass data, the entire crypto market saw over $133 million in liquidated short positions the day before, contributing to a total of $177 million in liquidations across multiple centralized exchanges.
The increase in liquidations was caused by recent market volatility caused by the rising bitcoin price.
The current uptick in the cryptocurrency market can be attributed to growing expectations that the Securities and Exchange Commission (SEC) will approve several spot bitcoin ETFs.
According to reports, the SEC may begin informing ETF applicants about the status of their applications as early as Tuesday.