- A fake tweet about a new Bitcoin ETF caused the price to briefly spike and then crash, forcing traders to sell $230 million worth of Bitcoin holdings to avoid losses.
- Highs of $140 million and lows of $91 million were liquidated during this period as the price of Bitcoin rose to nearly $48,000 before falling back to the $45,000 range.
- Bitcoin's annualized volatility currently sits at 50.97%, which is a multi-week high for this metric.
Amid a period of high volatility, Bitcoin has managed to maintain its position above $45,000. The recent ongoing drama over the SEC's X (Twitter) account hack has sent the price of Bitcoin tumbling from $48,000 to $45,000, which is currently trading at $45,217.
Huge settlement for fake news
Recent price fluctuations have led to the liquidation of over $90 million worth of leveraged Bitcoin positions. Total liquidations of all leveraged cryptoassets reached a staggering $230 million, with the majority comprising long positions valued at $140 million. Short positions also suffered significant losses: $91 million was liquidated.
As excitement around the possible approval of Bitcoin spot ETFs intensifies, Bitcoin's annualized volatility has increased from a low of 42.88% in mid-December to a current level of 50.97%, which which marks a multi-week high for this metric.
Market volatility at its peak
As the cryptocurrency market continues to show volatility, the US Securities and Exchange Commission's impending decision regarding spot bitcoin ETFs has sparked a frenzy of speculation. While some experts anticipate that the approval of such a fund could lead to a price surge, a recent report from CryptoQuant suggests that the market remains susceptible to sudden price corrections.
As the cryptocurrency market goes through a period of volatility, the US Securities Exchange Commission's pending decision regarding spot bitcoin ETFs has sparked intense speculation. While some analysts predict that the approval of such a fund could lead to a price surge, a recent report from CryptoQuant has shed light on a potential risk.
In conclusion, The report highlights that unrealized gains among bitcoin holders have reached unprecedented levels, indicating that a price correction is not completely ruled out despite the growing demand for digital currencies. The circulating supply of earning bitcoins has reached a staggering multi-year high of 90.23%.
