Heightened Market Volatility Leads to $138 Million in Liquidations
In the past 24 hours, the crypto market has experienced increased volatility, resulting in over $138 million in liquidations of leveraged positions. The majority of these liquidations involved long positions, causing a loss of more than $120 million. On the other hand, short positions contributed only around $18 million to the total liquidations.
Bitcoin Price Drops Below $41,000
The price of Bitcoin has decreased by more than 2.5% in the last 24 hours, falling below the $41,000 mark. Currently, Bitcoin is trading at $40,730 as of 7 a.m. ET.
Bitcoin’s Value Decreases Following SEC Approvals
Since the SEC approved multiple spot Bitcoin ETFs twelve days ago, the cryptocurrency has lost over 7% of its value. After initially rallying above $48,000, Bitcoin experienced a sharp decline to around $43,000. Some analysts are now predicting a further drop below the $40,000 mark.
BitMEX Co-founder Hedges Against Downside Movement
BitMEX co-founder and Maelstrom CIO Arthur Hayes has hedged against further downside movement in Bitcoin by purchasing put options with a strike price of $35,000. Hayes believes that Bitcoin will continue to decline and has taken measures to protect against potential losses.
Increased Volatility Results in Liquidations and Decreased Unrealized Profits
The heightened volatility in the market has led to nearly $30 million worth of leveraged Bitcoin positions being liquidated. The majority of these liquidations were long positions, with over $24 million worth of Bitcoin longs being wiped out in the past 24 hours. Additionally, the circulating supply of Bitcoin in profit has decreased from over 90% to just over 83%, indicating a decline in unrealized profits among Bitcoin holders.
Hot Take: Bitcoin Faces Uncertain Future Amidst Volatility
As the market continues to experience increased volatility and Bitcoin’s price drops below key levels, the future of the cryptocurrency remains uncertain. Analysts and traders are closely monitoring the situation, with some predicting further declines in Bitcoin’s value. It is crucial for investors to stay informed and consider risk management strategies to navigate this volatile period in the crypto market.
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