Bitcoin (BTC) has surged past the $28,000 threshold, marking its highest prices in over a month. In the last 24 hours, Ethereum (ETH) surpassed $1,700, while Binance Coin (BNB) and Cardano (ADA) registered 3.3% gains. Polygon (MATIC) witnessed a 5.5% rise, but Solana’s SOL tokens led the major gains with an impressive 14.5% increase, fueled by renewed optimism for the network among traders, media reports said.
The surge in bitcoin and ether prices may be attributed to short liquidations on crypto-tracked futures, impacting approximately $94 million in bets against rising prices. This resulted in a “short squeeze,” characterized by a lack of supply and excess demand, as short sellers rushed to cover their positions. Notably, around 30,000 bearish bets were liquidated, with most occurring on the OKX crypto exchange.
Analysts attribute the gains to optimism surrounding ETF developments and seasonal trends. Traders at the Japanese exchange Bitbank had been eyeing the $28,000 level for bitcoin, with $28,500 serving as a crucial support level from the previous bull market, potentially transforming into a key resistance level in the coming weeks.
Analysts also highlighted historical seasonality as a contributing factor to Sunday’s gains. October has traditionally been bullish for cryptocurrencies, with Bitcoin recording losses only twice since 2013 during this month. This positive trend is often referred to as “Uptober” within the cryptocurrency community.
Furthermore, last week’s market optimism was fueled by expectations of increased demand, anticipating the approval of a formal Ether (ETH) futures exchange-traded fund (ETF) proposed by financial giant VanEck. Some analysts estimated a 90% chance of the ETF receiving approval in the first week of October.
