- A fake tweet about a new Bitcoin ETF briefly sent the price soaring, then crashing, forcing traders to sell $230 million in Bitcoin holdings to avoid losses.
- Maximums of $140 million and a minimum of $91 million were liquidated during this period, as Bitcoin’s price surged to almost $48,000 before falling back to the $45,000 range.
- The annualized Bitcoin volatility currently stands at 50.97%, which is a multi-week high for this metric.
Amidst a period of high volatility, Bitcoin has managed to maintain its position above $45,000. The ongoing recent drama over SEC’s X(Twitter) account hack has crashed Bitcoin price which came from $48,000 to $45,000, which is currently trading at $45,217.
Huge Liquidation Due to False News
The recent price fluctuations have resulted in the liquidation of over $90 million worth of leveraged Bitcoin positions. The total liquidations for all leveraged crypto assets reached a staggering $230 million, with the majority comprising long positions valued at $140 million. Short positions also faced significant losses, with $91 million being liquidated.
As the excitement surrounding the potential approval of spot Bitcoin ETFs intensifies, annualized Bitcoin volatility has surged from a low of 42.88% in mid-December to a current level of 50.97%, marking a multi-week high for this metric.
Market Volatility at its Peak
As the cryptocurrency market continues to exhibit volatility, the looming decision by the U.S. The Securities and Exchange Commission’s decision regarding spot bitcoin ETFs has sparked a frenzy of speculation. While some experts anticipate that the approval of such a fund could ignite a price surge, a recent report by CryptoQuant suggests that the market remains susceptible to sudden price corrections.
As the cryptocurrency market undergoes a period of volatility, the pending decision by the U.S. Securities Exchange Commission regarding spot bitcoin ETFs has sparked intense speculation. While some analysts predict that the approval of such a fund could trigger a price surge, a recent report by CryptoQuant has shed light on a potential risk.
To conclude, the report highlights that unrealized profits among bitcoin holders have reached unprecedented levels, indicating that a price correction is not entirely out of the question despite mounting demand for digital currencies. The circulating supply of bitcoin in profit has reached a staggering multi-year high of 90.23%.
