Bitcoin Price Experiences Volatility and Liquidation Event
Yesterday, the price of Bitcoin went through a rollercoaster ride, reaching a high of over $73,000 before experiencing a liquidation event that resulted in the unwinding of over $361 million worth of leveraged trades. As a result, the BTC price dropped below $68,300.
This significant price fluctuation mainly affected long position holders, who lost a staggering $258 million. However, Bitcoin quickly recovered and saw a V-shaped rebound, causing short sellers to lose just over $103 million.
According to data from Coinglass, this event marked the largest purge of long positions since March 5, when Bitcoin dropped to $60,800 after reaching an all-time high of around $69,000.
Record Inflows in Bitcoin ETFs
Interestingly, the price dip presented an opportunity for investors in spot Bitcoin Exchange-Traded Funds (ETFs) to engage in a significant buying spree. On Tuesday, March 12, spot Bitcoin ETFs experienced a daily inflow surpassing $1 billion for the first time. The majority of this inflow, amounting to $849 million, went into BlackRock’s IBIT ETF.
According to detailed data released by Farside Investors, the total net inflows across all Bitcoin ETFs reached $1.045 billion on that day.
- Fidelity’s FBTC ETF received an inflow of only $51.6 million.
- Ark Invest saw an inflow of $93 million.
- Bitwise had an inflow of $24.6 million.
- Valkyrie received an inflow of $39.6 million.
- VanEck had an inflow of $82.9 million.
- Grayscale’s GBTC ETF saw a small outflow of just $79 million.
Alessandro Ottaviani, a Bitcoin analyst, highlighted the significance of these inflows, stating that the total net inflow was $1 billion in just one day. He also mentioned that over the past twelve trading days, the average daily inflow was $768 million.
Additionally, Crypto Quant analyst Maartunn revealed that the Bitcoin ETF experienced its highest inflows ever, with an additional 14,706.2 BTC being added. This further emphasizes the increasing demand for Bitcoin and the potential for a major supply squeeze.
Bitcoin Price Surpasses $73,500
major correction of the 2021 cycle came when price went 2x previous ATH. So could we see no major correction until $120k?”
At press time, BTC already surpassed the $73,500 mark and traded at $73,392.
Hot Take: Bitcoin Exhibits Volatility and Attracts Record Inflows
The price of Bitcoin experienced significant volatility, reaching new highs before encountering a liquidation event that caused a sharp drop. However, this dip presented an opportunity for investors in spot Bitcoin ETFs to engage in a buying spree, resulting in record-breaking inflows.
This influx of capital into Bitcoin ETFs indicates growing demand for the cryptocurrency and potentially sets it up for a major supply squeeze. With Bitcoin surpassing the $73,500 mark, it remains to be seen if a major correction will occur before reaching $120,000.
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