Market volatility causes over $138 million liquidations on centralized exchanges in 24 hours
Market volatility has resulted in the liquidation of $138 million in leveraged positions on exchanges.The price of bitcoin has dropped 2.8% in the last 24 hours, falling below the $41,000 mark.
The majority of the liquidations involved long positions, leading to a loss of over $120 million, while short positions contributed only around $18 million to the total liquidations, according to Coinglass data.
The price of bitcoin has dropped 2.8% in the last 24 hours, falling below the $41,000 mark. The world’s largest cryptocurrency by market capitalization is now trading at $40,730 as of 7 a.m. ET, according to The Block’s Prices Page.
The price of bitcoin has fallen by over 2% in the past 24 hours, dipping below the $41,000 mark. Image: The Block Price's Page.
In the twelve days since the SEC approved multiple spot bitcoin ETFs , the largest cryptocurrency by market cap has lost over 7% of its value.
After the approvals on January 10, the bitcoin price rallied above the $48,000 mark before posting a sharp fall to around $43,000. Now some analysts are predicting a further decline below the $40,000 mark.
BitMEX co-founder and Maelstrom CIO Arthur Hayes said he has hedged against further downside movement with BTC -2.56% puts at a strike price of $35,000. "BTC looks mad heavy. I think we break $40k. I went long some 29 March $35,000 strike puts," Hayes said in an X.com post . Puts are options contracts that give the holder the right (but not the obligation) to sell the underlying asset at the specified strike price.
Heightened bitcoin price volatility
The annualized bitcoin volatility has increased since the SEC approved multiple spot bitcoin ETFs. Before the approval annualized BTC volatility was around 46%, however, it has now increased to over 52%, according to The Block's Data Dashboard .
The volatility has led to the liquidation of almost $30 million worth of leveraged bitcoin positions. The majority of BTC liquidations are longs, with over $24 million bitcoin long position wiped out in the past 24 hours, per Coinglass data.
Unrealized profits among bitcoin holders have decreased from the elevated levels observed after the launch of multiple spot ETFs on January 11, which may offer some relief to the increase in sell pressure. According to The Block's data dashboard , the circulating supply of bitcoin in profit has fallen from a multi-year high of over 90% to a current reading of just over 83%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tokenized stock market reaches $3B across 3,374 assets
XRP trades above $1.07, targets $1.25 as short squeeze and whale accumulation drive rally
Solana Mobile updates Seeker Season 2 scoring to reward real wallet use over gaming the system
Benson states that US Treasury buybacks can be further increased, with a single operation possibly exceeding $4 billion; economic warfare against Iran may replace military action.
Besant stated that the Treasury has a strong toolkit, and long-term bond yields are not reflecting fundamentals. The liquidity of 30-year US Treasuries is particularly insufficient, and the scale of repos will depend on conditions. AI investment has made companies "almost insensitive" to yields when issuing bonds. A press conference will be held next Monday to explain the action plan regarding Iran; the US will impose the "most severe sanctions in history" on Iran. When applying economic pressure, the US may not need to resume large-scale military actions against Iran. He reiterated the strong dollar policy, noting that the dollar is returning to the level of two months ago, and expressed confusion over Thursday's oil price increase.
Crypto prices
More
