price of bitcoin It fell below the $43,000 mark on Friday as market volatility increased due to the Securities and Exchange Commission’s (SEC) approval of a multi-spot ETF application.
that much High volatility over the past day has caused Bitcoin to plummet below $43,000 after reaching nearly $49,000. More than $80 million worth of leveraged Bitcoin positions were liquidated due to increased price volatility. Most of these leveraged positions were long positions, resulting in a loss of over $47 million.
Total liquidation volume across all leveraged cryptocurrency positions in the last 24 hours reached $209 million, according to Coinglass data. Most liquidations were through purchases, with $121 million liquidated and approximately $88 million coming from short positions that were liquidated.
In derivatives markets, liquidation occurs when a trader’s position is forced to close due to insufficient funds to cover losses. This situation occurs when market movements are against the trader’s position and the initial margin or collateral is depleted.
Increased market volatility and trading volume
Volatility, which has shaken many leveraged positions, has increased compared to the previous month. Current year-to-date Bitcoin volatility has increased to 46.5% from a mid-December low of 42.9%, according to The Block’s data dashboard.
Bitcoin BTC
+0.34%
According to The Block’s, on-chain transaction volume rose to $41.5 billion, the highest in 12 months. data.
While the decline in Bitcoin price could be interpreted as a “news selling event,” one analyst suggested that the approval of several spot Bitcoin ETFs gives the asset institutional approval.
According to Copper research director Fadi Aboualfa, the approval of a spot Bitcoin ETF suggests that the SEC considers the cryptocurrency market to be mature. “It shows that the SEC believes that the cryptocurrency markets are actually efficient and transparent, and that there is no market manipulation that would prevent it from protecting investors, which is central to its mission,” Aboualfa told The Block.
According to The Block’s pricing page, the price of the world’s largest cryptocurrency by market capitalization has fallen more than 7.9% over the past 24 hours, falling to $42,592 at 5:12 PM ET.
(Updated with the latest Bitcoin price.)
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