Bitcoin’s Price Drops: What Caused Over $100 Million in Liquidations?
On early Tuesday, Bitcoin’s value dropped sharply to $67,900. This marked a decline of over 3.3% from its Monday peak of approximately $71,200.
This downturn coincided with significant changes in the flow of funds within Bitcoin exchange-traded funds (ETFs), which switched to negative flows after 19 consecutive days of positive inflows.
Major Outflows in Bitcoin ETFs
- According to data from Farside Investors, Fidelity Wise Origin Bitcoin Fund (FBTC) reported an outflow of $3 million.
- Similarly, the Invesco Galaxy Bitcoin ETF (BTCO) saw an outflow of $20.5 million, and the Valkyrie Bitcoin Fund (BRRR) experienced a depletion of $15.8 million.
- The Grayscale Bitcoin Trust (GBTC) noted the largest outflow, with $39.5 million exiting the fund.
Inflows in Bitcoin ETFs
- On the other hand, BlackRock’s iShare Bitcoin Trust (IBTC) recorded an inflow of $6.3 million.
- Additionally, the Bitwise Bitcoin Fund (BITB) attracted $7.6 million on the same day.
Impact on Market Stability
- Despite these gains, the total effect was a net outflow of $64.9 million across all ETFs.
- The shifts in fund balances and market stability resulted in $101 million in crypto liquidations over the last 12 hours.
Crypto Liquidations Breakdown
- Around $94.43 million were from long positions, while short trades saw liquidations amounting to $6.57 million.
Despite the recent volatility, prominent financial figures maintain a positive outlook on Bitcoin’s future. Robert Kiyosaki, author of “Rich Dad Poor Dad,” advocates for Bitcoin as a strategic path to wealth.
“Making millions as an entrepreneur is hard. I know. You have to be really smart, dedicated, and lucky to become a millionaire starting your own business. I save Bitcoin because Bitcoin does the hard work for me. That is why I love Bitcoin,” Kiyosaki said.
As the market processes these changes, the sentiment among cryptocurrency enthusiasts remains cautiously optimistic. Although the immediate future may involve further fluctuations, the enduring appeal of cryptocurrencies like Bitcoin continues to draw both seasoned and new investors.
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