Sudden Bitcoin Price Spike Pushes Crypto Liquidations to $285 Million

As Bitcoin's price continues to shoot upwards, traders betting on the asset to go down are feeling the pain. But so are those betting on the price going up.

The biggest digital asset by market cap was fast closing in on $68,000 per coin earlier Tuesday amid a sudden spike, according to CoinGecko. However, the rise was short-lived, with the gains being completely erased.

Bitcoin is now trading hands for just above $65,200, after hitting a daily high of $67,803 per data from CoinGecko. And on America's biggest crypto exchange, Coinbase, Bitcoin landed less than $70 away from $68,000 per coin earlier.

Bitcoin's sudden rise has hurt futures traders who were shorting the coin, or betting on its price to go down. Over the past 24 hours, $130 million in short positions have been liquidated across all cryptocurrencies, CoinGlass data shows.

But with the quick plunge to follow the rise, now long position liquidations have actually overtaken the shorts during the span, with about $155 million worth. That puts the combined total at about $285 million over the past 24 hours across all assets.

The asset's rise comes as investors throw money at the newly-approved exchange-traded funds (ETFs) that give exposure to the coin. On Monday, over $556 million hit the American investment vehicles—the largest inflow the first week of June.

Last week, investors were likewise feeling bullish, putting some $419 million in Bitcoin-related funds worldwide in a rebound week following outflows the week prior.

Ethereum's price also spiked earlier today, hitting a high of $2,677 at 9am New York time. The second-biggest coin has since dropped, though, and is now trading for $2,560.

All cryptocurrencies could benefit from a Republican presidency, analysts have said. Former President Donald Trump has come out as explicitly pro-crypto in his attempt to gain a second term in the White House, while Democratic rival Kamala Harris, the current vice president, has only just started to share crypto policy plans.

Edited by Andrew Hayward