Bitcoin Price Takes a Hit After Spot ETF Launch
The buzz around Bitcoin cooled on Friday following the launch of the first spot Bitcoin ETFs in the United States. Crypto traders reacted by selling the news, causing the price of the leading cryptocurrency to tumble after recent gains.
According to CoinGecko, Bitcoin experienced a 6% plunge, hitting a low of $43,413. However, it is currently ticking upward and is priced at $43,547 at the time of writing.
Liquidations and Market Impact
In the past 24 hours, over $90 million worth of Bitcoin positions were liquidated. CoinGlass data shows that long positions accounted for $76 million, while shorts amounted to over $14 million. The dip in Bitcoin’s price accelerated, resulting in nearly $30 million worth of long liquidations in just one hour.
Ethereum’s Rise and Optimism
Interestingly, Ethereum has experienced an opposite trajectory, with its value rising as investors anticipate spot Ethereum ETFs in the United States. BlackRock CEO Larry Fink expressed his belief in the value of such offerings during an interview with CNBC. BlackRock filed for a spot Ethereum ETF in November.
Ethereum has seen a nearly 19% increase this week, almost reaching $2,700 on Friday morning for the first time since April 2022. Additionally, Ethereum scaling networks Arbitrum and Optimism achieved all-time high prices for their tokens earlier on Friday.
Hot Take: Bitcoin Faces Volatility Following ETF Launch
The launch of spot Bitcoin ETFs in the United States has resulted in increased volatility for Bitcoin’s price. While anticipation was high prior to the launch, crypto traders responded by selling off their holdings after the event took place. This has led to a significant dip in Bitcoin’s value, causing liquidations of over $90 million worth of positions. In contrast, Ethereum has seen a rise in value and investor interest as they await the introduction of spot Ethereum ETFs. The market is likely to remain volatile as traders navigate the impact of these new investment products.
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