As market volatility increases, the total liquidation of leveraged cryptocurrency positions exceeded $138 million in the last 24 hours.
According to Coinglass data, most liquidations involved long positions, resulting in losses of more than $120 million, while short positions accounted for only about $18 million of all liquidations.
Bitcoin price has fallen more than 2.5% in the past 24 hours, falling below the $41,000 level. The world’s largest cryptocurrency by market capitalization is currently trading at $40,730 as of 7 a.m. ET, according to The Block’s pricing page.
Bitcoin price has fallen more than 2% in the past 24 hours, falling below the $41,000 level. Image: Block pricing page.
In the 12 days since the SEC approved several spot Bitcoin ETFs, the largest cryptocurrency by market capitalization has lost more than 7% of its value.
Following approval on January 10, the price of Bitcoin rebounded above $48,000 before plummeting to around $43,000. Now some analysts are predicting a further decline below $40,000.
Arthur Hayes, BitMEX co-founder and Maelstrom CIO, said: We hedged against further downturns. 
BTC
-2.04%
We offer a strike price of $35,000.. “BTC It looks very heavy. I think we’ll break $40,000. I bought a $35,000 strike put option on March 29th,” Hayes told X.com. post. A put option is an options contract that gives the holder the right (but not the obligation) to sell the underlying asset at a specified strike price.
Bitcoin price volatility increases
Year-to-date Bitcoin volatility has increased since the SEC approved several spot Bitcoin ETFs. According to The Block’s data dashboard, prior to approval, annual BTC volatility was around 46%, but has now risen to over 52%.
Nearly $30 million worth of leveraged Bitcoin positions were liquidated due to volatility. The majority of BTC liquidations are buys, with more than $24 million worth of long Bitcoin positions wiped out in the past 24 hours, according to Coinglass data.
Unrealized profits for Bitcoin holders have declined from the high levels observed following the launch of the multi-spot ETF on January 11, which may alleviate some of the increased selling pressure. According to The Block’s data dashboard, Bitcoin circulating supply based on revenue has fallen from a multi-year high of 90% to the current figure of 83%.
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