Cardano and Ether surge as short traders lose $125M in Bitcoin-led rally.

Bitcoin (BTC) experienced a sudden surge in value overnight, causing other major cryptocurrencies such as cardano’s ADA and ether (ETH) to also rise by as much as 7% and record some of the largest single-day gains this month.

In addition to these major cryptocurrencies, bitcoin cash (BCH) saw an increase of 15%, stacks (STX) experienced a surge of 21%, and the tokens of “Chinese Ethereum” conflux (CFX) rose by up to 30%, as traders likely made bets on these tokens seeing significant gains in the future.

Overall, the market capitalization of the entire crypto market increased by 5% over the past 24 hours, adding nearly $50 billion in value. This surge resulted in $125 million in short liquidations across futures contracts tied to cryptocurrencies, according to CoinGlass.

Data shows that traders who shorted bitcoin lost $54 million, followed by losses in ether, sui (SUI), and XRP. Shorts are essentially bets against the rise in the price of any given asset.

Liquidation occurs when an exchange forcibly closes a trader’s leveraged position due to a partial or complete loss of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open).

Some traders were bullish last week due to hopes surrounding the potential filing of a U.S. Bitcoin ETF by investment giant BlackRock. Some crypto experts believe that if the filing is approved, it could result in large inflows for bitcoin and subsequently further gains in the market.

“Blackrock’s ETF presents a statement or unique ‘solution’ if you will that makes it different from previous ETF filings,” shared Eitan Katz, CEO of Kima, in a Telegram message. “It includes a surveillance sharing agreement with Nasdaq, which means that Nasdaq will have access to the trading data, including customer IDs–all with the intention of making it significantly more immune to market manipulations by traders.”

“Should the application be approved as many are speculating based on BlackRock’s success rates in its ETF filings, it will lend legitimacy to the cryptocurrency which is bound to draw in more investors including corporate and high net-worth individuals,” Katz added.

Edited by Parikshit Mishra.

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