Bear Blues: More than $296 million worth of shorts flowed in 24 hours
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The prospect of approval of an Ethereum exchange-traded fund (ETF) in the US has surprised bears, resulting in more than $296 million in short positions being liquidated in the past 24 hours, according to data aggregator Koengles. Ethereum short positions represent $100 million of the total.
Meanwhile, long positions represent just $80 million of all derivatives liquidity in the past 24 hours. The total market value of the crypto market has increased by 8.1% in the same period, Ethereum (ETH) is leading the pack of major cryptos with a growth of 23.7%.
The market rallied yesterday after Bloomberg ETF analysts James Seifert and Eric Balchunas raised their odds of Ethereum ETF approval in the US to 75%.
Meanwhile, even executives at large asset management firms are not optimistic. This was reflected in the weekly flow of crypto funds, as Ethereum-related funds saw more than $23 million in outflows amid ETF uncertainty last week, CoinShares reported.
However, the SEC, as described by Balchunas, was motivated by “political issues” and began to move behind the scenes. This may be related to last week's Senate vote to repeal the regulator's Staff Accounting Bulletin 121 (SAB 121), which made it more expensive for banks to offer crypto services. As SAB 121 faces the Senate, the SEC may be in a tight spot and may be fending off lawmakers' scrutiny.
Ready to fly
The altcoin market on X, known as Rekt Capital, is poised for a Q2 hypercycle after successfully capturing a market cap of $250 billion. According to the trader, this next upward movement in the altcoin market may last until July.
$ALTS
Welcome to the Q2 Altcoin Hype Cycle
Altcoin Bottoming Out is underway $BTC #Crypto #Bitcoin pic.twitter.com/Xy3wiUL9yA
— Rekt Capital (@rektcapital) May 21, 2024
Bitcoin (BTC)'s weekly close above $71,500 “may be starting to break out of the retracement range,” according to Rect Capital. However, previous cycles indicate that BTC has a high probability of staying between $70,000 and $60,000 for consecutive weeks.
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