Bitcoin Price Plunge Sparks $460 Million in Liquidations
Within the last hour, the crypto market saw over $460 million in long liquidations as the price of Bitcoin plummeted by 8%. The sudden drop was fueled by rumors that the SEC might delay the approval of a spot ETF. Major centralized exchanges reported losses of around $462 million for long traders during this period, with a total of $557 million in long liquidations and $58 million in short liquidations over the past 24 hours. Leading the pack in terms of liquidations were OKX with over $230 million, followed by Binance at $105 million and Huobi at around $74 million.
ETF Delay Rumors Send Bitcoin to $40,000
The crash in Bitcoin’s price to as low as $40,000 was triggered by speculation from Matrixport that the SEC would reject spot Bitcoin ETF applications this month. In a recent post on X (formerly Twitter), Matrixport projected a January rejection for Bitcoin Spot ETFs and warned traders to hedge their long exposure. The company also anticipated a potential 20% drop in Bitcoin’s price upon ETF denial, although it remains optimistic about the cryptocurrency’s prospects for the end of 2024.
Current Bitcoin Price and Conclusion
As of now, Bitcoin is trading at $42,379, reflecting a decrease of more than 6% over the past day. The significant liquidations and price drop highlight the volatility and sensitivity of the crypto market to regulatory news and rumors. Traders should remain cautious and closely monitor developments that could impact cryptocurrency prices.
Hot Take: Impact of ETF Delays on Bitcoin
The recent rumors surrounding the SEC’s potential delay in approving spot Bitcoin ETFs have had a profound impact on the cryptocurrency market. The $460 million in liquidations and the 8% drop in Bitcoin’s price demonstrate the influence of regulatory decisions on investor sentiment and market dynamics. While these developments may create short-term volatility, they also emphasize the need for a more robust regulatory framework to provide stability and confidence to market participants. Ultimately, the delay in ETF approvals serves as a reminder that the crypto industry is still evolving and subject to regulatory scrutiny, which can significantly impact asset valuations.
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