The price of bitcoin fell below the $43,000 mark on Friday as increased market volatility followed the Securities and Exchange Commission's approval of multiple spot ETF applications.
He High volatility over the past day saw Bitcoin almost touch $49,000 before recording a sharp drop below the $43,000 mark. Increased price fluctuations led to the liquidation of more than $80 million in leveraged assets. bitcoin positions. The majority of those leveraged positions were long, with more than $47 million wiped out.
According to Coinglass data, Total liquidations in the last 24 hours for all leveraged crypto positions amounted to $209 million. Most liquidations were long, with $121 million wiped out and around $88 million in short positions liquidated.
In derivatives markets, liquidations occur when a trader's position is forcibly closed due to insufficient funds to cover losses. This situation arises when market movements are unfavorable to the trader's position, resulting in the depletion of his initial margin or collateral.
Increased market volatility and transaction volume.
The volatility that hit many leveraged positions was elevated compared to the previous month. The Block data panel puts bitcoin's current annualized volatility at 46.5%, up from a low of 42.9% in mid-December.
bitcoin btc
-7.20%
On-chain transaction volume has risen to a 12-month high of $41.5 billion, according to The Block. data.
Although the drop in bitcoin price could be interpreted as a "news selling event," one analyst suggested that the approval of multiple bitcoin spot ETFs provides the asset with institutional approval.
According to Copper's head of research, Fadi Aboualfa, the approval of spot bitcoin ETFs suggests that the SEC considers cryptocurrency markets to have matured. โThis demonstrates that the SEC believes that crypto markets are, in fact, efficient, transparent, and free of market manipulation that would not allow them to protect investors, a key part of their mandate,โ Aboualfa told The Block.
The price of the world's largest cryptocurrency by market capitalization decreased more than 7.9% in the last 24 hours, falling to $42,592 as of 5:12 p.m. ET, according to The block pricing page.
(Updates with the latest bitcoin price.)
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