Bitcoin, alongside the rest of the crypto market, shot up following the news that a US court has sided with Grayscale in its battle against the SEC.
Naturally, this volatility brought massive pain for over-leveraged traders as the liquidated short positions skyrocketed to about $80 million within an hour.
- CryptoPotato reported Grayscale’s court victory earlier today, which essentially meant that the SEC is now obligated to review the asset manager’s request to turn its flagship Bitcoin Trust into a spot exchange-traded fund.
- Although this doesn’t necessarily mean that the regulator will indeed approve such a product, the court’s decision had a massive effect on BTC’s price.
- The asset had stalled for weeks at around $26,000 but exploded by about $2,000 to chart a multi-week high at almost $28,000.
- Most altcoins reacted in a similar fashion, with BNB, SOL, MATIC, TONCOIN, LTC, BCH, AVAX, and XLM soaring by somewhere between 5% and 10%.
- According to data from CoinGlass, this has resulted in a large number of wrecked traders over the past hour. The total value of liquidations is up to $85 million in the last 60 minutes, with short positions equaling 90% of that amount.
- BTC’s share is the largest, with over $40 million worth of the asset liquidated.