Bitcoin’s Rollercoaster Ride After ETF Approval
Bitcoin experienced a wild ride after the approval of spot exchange-traded funds (ETFs) tracking its performance by the US SEC. The cryptocurrency initially soared past $49,000, reaching a two-year high. However, it quickly plummeted by over $3,000 within minutes.
Over-Leveraged Traders Face Pain
The sudden price volatility resulted in significant losses for over-leveraged traders. The liquidation of positions reached a staggering value of over $300 million on a daily scale. More than 100,000 traders were liquidated, with the largest position being worth $6.6 million on Binance.
The Historic Day for Cryptocurrency Industry
January 10, 2024, will be remembered as a significant date for the cryptocurrency industry. The US SEC finally approved spot ETFs for Bitcoin, leading to increased market volatility. The first few hours after the approval saw massive trading volumes of approximately $2 billion.
Bitcoin’s Price Rollercoaster
As a result of the ETF approval, Bitcoin’s price initially surged above $49,000. However, it quickly dropped by over $3,000 within an hour. This caused Bitcoin to slump below $46,000 and led to similar price movements in alternative coins.
Painful Consequences for Over-Leveraged Traders
The volatile market movements have had severe consequences for over-leveraged traders. Data from CoinGlass reveals that liquidations surpassed $340 million in the past 24 hours alone, with over $50 million liquidated in the past hour.
Hot Take: Bitcoin’s ETF Approval Sparks Volatility and Trader Losses
The approval of spot ETFs for Bitcoin by the US SEC sparked both excitement and volatility in the market. While Bitcoin initially surged to a two-year high, it quickly experienced a significant drop, causing losses for over-leveraged traders. This historic day in the cryptocurrency industry showcases the impact that regulatory decisions can have on market movements. Traders must remain cautious and prepared for sudden price fluctuations in this ever-changing landscape.
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