Bitcoin Breaches $28K Amid Altcoins Rally, Liquidation Sees Bears Shed $94M

• Bitcoin (BTC) sails past the $28,000 benchmark, marking its peak in over a month, amidst growing ETF optimism and a favorable seasonal trend.
• An ensuing short squeeze in the crypto futures market results in a $94 million loss for bears, spotlighting Solana (SOL) as a significant gainer among altcoins.

The cryptocurrency realm witnessed a spectacle as Bitcoin (BTC) soared beyond the $28,000 threshold early Monday, marking its zenith in over a month. Analysts are attributing this bullish stride to a blend of Exchange Traded Fund (ETF) optimism and a seasonality trend that often favors the cryptocurrency market.

Noteworthy Altcoin Performances

As Bitcoin brandished its bullish horns, the altcoin sector wasn’t left behind. Ether (ETH) nudged past $1,700 while Binance Coin (BNB), and Cardano (ADA) chipped in gains of 3.3%. Polygon (MATIC) ascended by 5.5%, yet it was Solana’s SOL tokens that stole the limelight with a remarkable 14.5% uptick. The substantial rally in SOL tokens primarily stemmed from a rekindled optimism among traders towards the network’s prospects.

The spotlight, however, wasn’t solely on the buoyant price action. The derivatives market unveiled a drama of its own. Short liquidations on crypto-tracked futures significantly contributed to the amplification of Bitcoin and Ether’s price. Data unfurled a staggering $94 million liquidation in bets against rising prices on Sunday, orchestrating a “short squeeze” scenario. This financial phenomenon erupts when there’s a deficiency in supply and a surplus in demand, courtesy of short sellers scurrying to buy stocks to cover their positions.

Approximately 30,000 bearish bets faced liquidation with a lion’s share of liquidations unfolding on the cryptocurrency exchange OKX. In the realm of cryptocurrency trading, liquidation transpires when an exchange mandatorily closes a trader’s leveraged position due to a partial or complete erosion of the trader’s initial margin. This unfavorable event is triggered when a trader falls short of meeting the margin requisites for a leveraged position or lacks adequate funds to sustain the trade.

Amidst these market dynamics, some traders directed attention towards the historical seasonality that often graces the cryptocurrency market with bullish tendencies. Samer Hasn, a markets analyst at XS.com, illuminated the bullish ambiance that traditionally envelops the month of October, often termed “Uptober” within the cryptocurrency community due to Bitcoin’s historic gains during this month since 2013, barring a couple of exceptions. This sentiment resonated well with the market’s current demeanor, potentially laying a fertile ground for further upward trajectories.

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