Summary
The price of Bitcoin dropped below $43,000 following increased market volatility after the approval of multiple spot ETF applications by the SEC. The volatility led to the liquidation of over $80 million worth of leveraged Bitcoin positions, with the majority being long positions. In the past 24 hours, total liquidations for all leveraged crypto positions amounted to $209 million. The approval of spot Bitcoin ETFs suggests that the SEC believes the cryptocurrency market has matured and is efficient and transparent. The decline in Bitcoin’s price could be seen as a “sell the news event,” but it also indicates institutional approval for the asset.
Key Points
1. The price of bitcoin dipped below the $43,000 mark on Friday following the approval of multiple spot ETF applications by the Securities and Exchange Commission. This increased market volatility led to the liquidation of over $80 million worth of leveraged bitcoin positions, with the majority being long positions.
2. In the past 24 hours, total liquidations for all leveraged crypto positions amounted to $209 million, with $121 million wiped out in long positions and around $88 million in short positions.
3. Bitcoin’s on-chain transaction volume has reached a 12-month high of $41.5 billion, indicating increased market activity. Despite the decline in bitcoin’s price, the approval of spot bitcoin ETFs suggests institutional approval and recognition of the maturity and transparency of the crypto markets by the SEC.