Bitcoin Price Remains Above $45,000 Amid Volatility
Bitcoin has managed to stay above the $45,000 mark despite experiencing high volatility in the past 24 hours. The cryptocurrency’s price surged to nearly $48,000 following a false message about the approval of a spot bitcoin ETF posted on the SEC’s official X account. However, once the agency clarified that the tweet was fake, the price dropped back down to around $45,000, resulting in significant liquidations.
Liquidations of Leveraged Bitcoin Positions
The price volatility led to over $90 million worth of leveraged bitcoin positions being liquidated. According to Coinglass data, the total liquidations for all leveraged crypto positions amounted to $230 million. Most of the liquidations were long positions, with $140 million wiped out, while $91 million in short positions were liquidated.
Current Bitcoin Price and Volatility
As of 5:50 a.m. ET, the world’s largest cryptocurrency by market capitalization is trading at $45,622, representing a decrease of 1.88% in the past 24 hours. The recent volatility caused a multi-week high in annualized bitcoin volatility, which currently stands at 50.97%, according to The Block’s data dashboard.
Potential Approval of Spot Bitcoin ETFs and Market Volatility
Speculation about the potential approval of spot bitcoin ETFs by the U.S. Securities Exchange Commission has contributed to increased market volatility. While many analysts believe that such approval could lead to an upward price swing, a report from CryptoQuant suggests that there is still a risk of sudden price corrections in the bitcoin market.
The report highlights that unrealized profits among bitcoin holders remain elevated, indicating the possibility of a price correction. Despite the potential benefits of ETF approval, on-chain indicators point to a high level of unrealized profits that could trigger a correction.
Hot Take: Bitcoin Price Volatility and Potential Corrections
The recent volatility in the bitcoin market, fueled by false information about an approved ETF, has led to significant liquidations and a decrease in the cryptocurrency’s price. While there is anticipation surrounding the potential approval of spot bitcoin ETFs, there are concerns about the elevated level of unrealized profits among bitcoin holders, which could result in price corrections. As the market continues to fluctuate, it’s important for investors to stay informed and monitor the developments closely.
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