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Grayscale’s triumph over the U.S. Securities and Exchange Commission (SEC) resulted in over $90 million in liquidations within the last four hours, significantly affecting traders who were betting on a further downturn in the market.
As per data from Coinglass, short sellers represented 88% of the $97.63 million in liquidations observed in the market during this period, as Bitcoin (BTC) and Ethereum (ETH) surged by more than 5% each.
Bitcoin and ETH together accounted for over $60 million of the liquidations, while traders holding positions in assets like BNB, XRP, Bitcoin Cash, Solana, and others faced substantial losses.
This marks the highest level of liquidations since the market experienced a flash crash on August 17. The cryptocurrency sector is currently experiencing one of its lowest volatility phases, with BTC and ETH not exhibiting significant price movements.
In addition, when considering the liquidation period over the past 24 hours, the total losses reach $123.52 million.
GBTC discount narrows
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In parallel, Grayscale’s Bitcoin Trust (GBTC) responded favorably to the news of its parent company’s success, quickly narrowing to 18%, its lowest point in the past two years.
Source: Tradingview
The GBTC discount had peaked at nearly 50% last year and has predominantly hovered around 40% this year. However, this metric began to decline significantly following BlackRock’s application for a spot BTC ETF, eventually dropping below 20% for the first time since early 2022.
Earlier today, the United States Court of Appeals for the District of Columbia Circuit delivered a major victory to Grayscale by overturning the SEC’s prior order. This decision represents a crucial development in Grayscale’s legal battle to convert its Bitcoin Trust into a spot Bitcoin ETF.
The cryptocurrency investment firm has consistently argued that the financial regulator acted “arbitrarily and capriciously” in denying spot Bitcoin ETF applications, emphasizing the SEC’s “unfair discrimination” against issuers of spot Bitcoin ETFs.
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