Bitcoin Continues to Approach $41,000 as ETF Trading Volume Surpasses $15 Billion
Bitcoin is once again nearing the $41,000 mark for the second consecutive day, while the cumulative volume for the 11 new spot ETFs has exceeded $15 billion on their sixth day of trading.
Bitcoin’s Price Declines and Liquidations
The world’s largest cryptocurrency by market capitalization has dropped 1% to $41,065, slipping below $41,000 for the first time in over a month. In the past 24 hours, price volatility has led to liquidations of nearly $87 million in leveraged bitcoin positions, with long positions accounting for over $74 million of that total.
Liquidations in the Crypto Market
The overall crypto market has witnessed over $230 million in liquidated long positions in the past day, contributing to a total of $271 million across various centralized exchanges. These liquidations occur when traders’ positions are forcibly closed due to insufficient funds to cover losses.
Bitcoin Spot ETFs Experience Net Outflow
Bitcoin’s price declines coincide with a net outflow of $137.4 million from spot bitcoin ETFs, primarily due to a withdrawal of $582.3 million from Grayscale’s fund. Analysts at JPMorgan suggest that bitcoin’s price may face additional downward pressure if investors continue to profit from Grayscale’s spot ETF.
Inflows into Other ETFs
While Grayscale’s fund has experienced outflows, other new ETFs have seen net inflows. Fidelity’s fund received $177.9 million in inflows yesterday, and BlackRock’s iShares Bitcoin attracted an inflow of $145.5 million on Thursday.
Hot Take: Bitcoin’s Price and ETFs
Bitcoin’s price volatility and the outflows from Grayscale’s spot bitcoin ETF may continue to impact the cryptocurrency market. As investors take profits, it remains to be seen how these factors will influence bitcoin’s future performance.
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