- Bitcoin bears faced a significant blow, losing over $100 million in the past 24 hours, as the cryptocurrency surged by 9%, surpassing $47,000.
- The market turmoil coincides with the imminent approval decision for Bitcoin exchange-traded funds (ETFs) in the U.S., intensifying competition among issuers and signaling potential shifts in crypto landscape dynamics.
In a dramatic turn of events, Bitcoin (BTC) traders betting against an upward price trajectory faced a staggering loss of over $100 million within the last 24 hours. The surge in Bitcoin prices, reaching as high as 9% on Monday and surpassing the $47,000 mark for the first time since March 2022, was a clear indication of the market sentiment as the anticipation of a spot Bitcoin exchange-traded fund (ETF) approval in the U.S. reached a fever pitch.
Among the hardest-hit were traders on the crypto exchange OKX, who incurred losses amounting to $84 million, closely followed by Binance at $71 million. The uptick in open interest, measuring unsettled futures contracts, by over 8% within the same 24-hour period suggests that traders are actively engaging in additional bets following the liquidation event, anticipating continued market volatility.
The term “liquidation” refers to the forced closure of a trader’s leveraged position by an exchange due to either partial or total loss of the initial margin. Large liquidations often signal potential tops or bottoms in significant price movements, providing traders with valuable insights to adjust their positions accordingly.
Monday’s tumultuous market movements coincided with potential ETF issuers, including financial giants like BlackRock and Grayscale, filing their offering fees with the U.S. Securities and Exchange Commission (SEC). This crucial step brings the first-ever Bitcoin ETF in the U.S. one step closer to reality. With thirteen proposed ETFs awaiting SEC approval, competition among issuers is heating up, with some offering no fees for the first six months or for the first $5 billion in assets under management (AUM).
As the crypto community eagerly awaits the SEC’s decision on Wednesday, sources reveal that SEC officials have already communicated comments to prospective issuers, addressing minor details in the amended S-1 forms. This move suggests meticulous scrutiny as the regulatory body inches closer to approving or denying the proposed ETFs. The unfolding events promise to be a crucial turning point for the crypto market, setting the stage for potential shifts in price volatility and investor sentiment.
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