Bitcoin (Bitcoin) Ether soared more than 19%, rising to $3,700 and trading at 7.7% early Tuesday, after Bloomberg analysts raised the probability that the Spot ETH exchange-traded fund (ETF) will be approved in the US to 75%. It exceeded $1,000, the highest price since early April.
Other major stocks posted relatively small gains, with XRP, Cardano’s ADA, Solana’s SOL, and Dogecoin (DOGE) rising 3% to 6%, according to CoinGecko data.
The sudden price increase led to more than $260 million in short interest across the market, the largest since February 28th. Ether shorts lost over $115 million, while Bitcoin shorts followed with just over $99 million. Coinglass data shows:.
Cryptocurrency exchange Binance recorded more than $130 million in liquidations, the most among exchanges, followed by OKX with $118 million and Huobi with $51 million.
Shorting is a bet against higher price movements. Liquidation refers to the forced closing of a trader’s leveraged position by an exchange due to the loss of some or all of the trader’s initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (does not have enough funds to sustain the trade).
The market began to rebound late Monday after Bloomberg analysts Eric Balchunas and James Seifert raised the odds on the Spot Ether ETF to 75% from an initial 20%. CoinDesk then reported that the U.S. Securities and Exchange Commission (SEC) has asked aspiring Ether exchange-traded fund exchanges to update their 19b-4 filings ahead of a key deadline this week.
Meanwhile, some traders expect Ethereum price to rise further in the coming days.
“Our view is that the spot is unlikely to settle here as approvals move closer to 4K and rejections revert to 3K,” Singapore-based QCP Capital said in a broadcast on Tuesday. Ta. “Exchanges have been asked to update their 19b-4 applications on an accelerated basis, suggesting approval is imminent.”
