Web 3.0 Cryptocurrencies Pump as $70M in Shorts Wiped

Crypto Short Liquidations

On October 1, a surprise increase in the prices of Bitcoin (BTC), Ethereum (ETH), and other web 3.0 cryptocurrencies caused a massive liquidation of more than $70 million worth of crypto shorts.

Data from TradingView showed that Bitcoin rose 3% within 15 minutes, from $27,100 to $28,053, before settling just below $28,000. The value of Ethereum’s Ether also experienced a 4.7% spike, reaching $1,755 before stabilizing at $1,727.

The sudden shift left the web 3.0 community perplexed, with many attributing the surge to the start of ‘Uptober’.

Web 3.0 and Crypto Market

The web 3.0 community has been speculating that someone knows something that the rest of the market doesn’t. October, or “Uptober”, is historically a positive month for the price action of Bitcoin and other web 3.0 cryptocurrencies, according to data from CoinGlass. In fact, October has only produced negative monthly returns twice since 2013.

The crypto market is looking forward to the potential approval of a spot Bitcoin ETF product by the United States Securities and Exchange Commission. However, most analysts are predicting Jan. 2024 as the most likely date for such an announcement.

While holders of spot and long positions have been celebrating the first significant price action in over a month, short sellers have had the opposite luck.

The rapid rise in value led to $70 million worth of short positions being liquidated in just two hours. According to Coinglass, around $36 million of BTC shorts and $23 million of ETH shorts were wiped out by the unexpected surge in prices.

As the Web 3.0 community continues to grow, the blockchain market has seen a surge in the number of cryptocurrencies, crypto tokens, and crypto coins. The SOFI Web 3.0 ETF has also been gaining traction, allowing investors to track the price of various Web 3.0 crypto coins and tokens.