Bitcoin surges for first time in 5 weeks, Ethereum and ETH surges

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Bitcoin surges for first time in 5 weeks, Ethereum and ETH surges

Bitcoin soared for the first time since August 17 in a surprise move Sunday evening.

BTC quickly added $800 in a sudden peak around 6:30am ET, bouncing off its resistance around $27,200, CoinGecko data shows.

It was the highest since yesterday at $28,271 in trading.

The bullish move liquidated assets worth $47.4 million in the futures market, per CoinGlass data, or 90% of which were in short orders, pointing to the potential reason behind the pump.

The price spike could have been caused by a short squeeze in the futures market, indicating that the move may have been driven by a short squeeze.

A short squeeze is when the price of an asset rises quickly as current short order holders, who bet against the market with leverage, are forced to buy an asset at higher prices as its price rises.

For the first time in five weeks, Ethereum rose above $1,700. The price surge in ETH's price surge made it possible for futures orders to be liquidated.

The combined market cap of crypto tokens increased by 3.3% in the past 24 hours, bringing the total market value to $1.16 trillion.

The positive increase in crypto prices rose to $114.9 million in the crypto market, with shorts amounting to $97.8 million or more than 85% of the total, per CoinGlass data.

The firm recorded the third highest liquidation after the majors with liquidations worth $5.92 million.

SOL lead the niche market's gains among the top 100 crypto tokens by market cap with 13.5% overnight gains.

Over the last 24 hours, the top gainers included Thorchain, Bitcoin SV, and Render tokens.

In addition to futures liquidations, the U.S. government's successful effort to avert a shutdown by extending its funding for 45 days may have also contributed to the positive sentiments in global markets.

The U.S. stock market futures opened on October 2 in the green, with the S&P 500 gaining 17.5 points to trade at 4,312.4 points.

The Nasdaq index also opened with a positive gap of 0.7% above Friday's closing, dipping into the 15,000 mark.

VanEck is also planning to launch the first Ethereum futures ETF today, boosting the positive sentiments.

In the past decade, Bitcoin's value has surged every year, except for the bear markets of 2014 and 2018 that have had a positive impact, according to CoinGlass data.