Key Takeaways
- Bitcoin and Ethereum prices surged to new highs over the weekend, triggering a multi-million-dollar liquidation wave.
- BTC and ETH leverage traders have lost more than $700 million since Friday, including over $350 million in just the past 24 hours.
- Short BTC traders took the heaviest hit as Bitcoin briefly touched $122,000.
After stumbling at the start of August, crypto bulls came roaring back in the second week, pushing Bitcoin (BTC) and Ethereum (ETH) to within striking distance of their all-time highs.
Over the weekend, BTC climbed past $122,000, while ETH broke above $4,300 to mark a fresh four-year high.
The rally sent shockwaves through the crypto leverage market, liquidating hundreds of millions in positions.
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Crypto Leverage Traders Lose $700 Million
It’s been a textbook bull run for spot holders, but a bloodbath for overleveraged crypto traders — especially those betting against the market.
According to Coinglass, crypto leverage traders collectively lost more than $700 million in three days, with short sellers bearing most of the losses.
Over the past 24 hours alone, 107,746 traders were liquidated for $350.69 million. Short positions accounted for $215 million of that, while long traders lost $135 million.
Bitcoin shorts were hit the hardest — losing $106 million as BTC jumped nearly $4,000 in a single day. Long BTC traders, by contrast, lost just $7.5 million.
For Ethereum, the pain was more evenly spread. ETH long traders shed $41 million, while shorts lost $49 million, as the token’s price held steady above $4,200.
If BTC and ETH keep building momentum, the leverage market could see an even bigger cascade, with short traders likely to take the brunt of it.
BTC and ETH Eye New All-Time Highs
At press time, Bitcoin was trading at $122,314 — just 0.71% shy of its record $123,091. Ethereum was hovering at $4,305, around 12% below its $4,809 peak from 2021.
Historically, August has been a bullish month for crypto, and if the current uptrend holds, fresh all-time highs could be on the horizon for both assets.
On-chain data is flashing strong bullish signals, driven in part by rising institutional interest.
More than 100 public companies now hold over 1 million BTC combined, while ETH treasuries are steadily growing.
Spot ETFs for both BTC and ETH have also seen renewed demand since July, with billions in inflows each week.
That fresh capital, combined with the current market momentum, could be the fuel needed to push Bitcoin and Ethereum into uncharted territory in the days ahead.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
