Bitcoin Exchange Rate Drop Leads to $700 Million Liquidation Volume
In the face of Bitcoin’s falling exchange rate, traders have liquidated approximately $698 million worth of positions in the last 24 hours, according to data from Coinglass. The majority of these liquidations came from BTC, amounting to $11.1 million, with most of them being short positions. Ethereum (ETH) also saw a significant number of liquidations, totaling $5.57 million, mostly from long positions.
Main Exchanges and Largest Liquidation Order
The liquidation of positions primarily occurred on crypto exchanges such as Binance, OKX, and Bybit. The largest liquidation order was a BTC–USDT position on the Huobi cryptocurrency exchange, amounting to $14.26 million.
Bitcoin Rate Decline Affects Alt-coin Sector
On January 3, 2024, Bitcoin experienced a sudden drop in its rate, plummeting to $41,500. Currently, BTC is attempting to stabilize above $42,800. This decline in Bitcoin’s rate also had an adverse impact on the alt-coin sector, with most assets experiencing an average decline of 13% over the past 24 hours.
SEC’s Impact on Bitcoin ETF Approval
The collapse in Bitcoin’s rate coincided with Matrixport analysts’ report that the U.S. Securities and Exchange Commission (SEC) will not approve spot Bitcoin ETFs this month. It is believed that the SEC will only register investment crypto-funds after companies fulfill all regulatory requirements, potentially happening in Q2 of 2024 according to Matrixport representatives.
Hot Take: Traders Face Significant Losses Amidst Bitcoin’s Decline
As Bitcoin’s exchange rate continues to decline, traders are facing substantial losses, resulting in a staggering $700 million liquidation volume. The majority of liquidations come from BTC, followed by Ethereum. This market downturn has also affected the alt-coin sector, causing significant declines across various assets. Additionally, the SEC’s decision not to approve spot Bitcoin ETFs this month adds further uncertainty to the crypto market. Traders must navigate these challenging times and stay informed about regulatory developments to make informed investment decisions.
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