The crypto futures market has seen a large amount of liquidations on Wednesday as Bitcoin has registered a sharp surge. Data shows that liquidations totaled at $170 million during the past 24 hours. This surge was likely due to news that Grayscale had won a lawsuit against the United States Securities and Exchange Commission (SEC), which could pave the way for a spot Bitcoin Exchange Traded Fund (ETF).Bitcoin shot up to the $28,000 level, but soon retraced back to the current $27,400 mark. Despite the pullback, Bitcoin has been able to hold onto the majority of its returns, with profits of almost 6%.The volatile price action has caused chaos in the futures market, with $120 million of the liquidations coming from short contracts alone. This event is an example of a “liquidation squeeze”, where a mass amount of liquidations happens following a sharp swing in the price, and these liquidations only end up feeding the price move further. Large futures flushes like the one in the past day are not uncommon in the crypto sector due to the coins’ volatility and the availability of high leverage across most platforms.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	positive
Relevance Score	8
People	None
Companies	United States Securities and Exchange Commission, Grayscale, Bitcoin Exchange Traded Fund, CoinGlass, CryptoSlate
Currencies	Ethereum, Bitcoin
Securities	None