- Bitcoin has recovered slightly from the 4.4% price drop.
- BTC spot ETF saw additional sign-ups from applicants as news of rejection predictions circulated.
Bitcoins [BTC] The value has recently fallen due to the continued fear, uncertainty and doubt (FUD) surrounding the adoption of the spot ETFs. Altcoins also saw significant liquidations amid falling prices for several assets.
Bitcoin and the crypto market are losing millions of dollars
In a recent update Michael van de Poppe, the founder of MN Trading, said altcoins reached their highest liquidation levels in the past two years. This sell-off coincided with a day when Bitcoin suffered a significant price drop.
According to CoinMarketCapthese declines had a notable impact on the overall crypto market capitalization. At the time of writing, it had fallen about 4.7% to $1.65 trillion.
While there is speculation that these declines were related to reports of upcoming rejections of BTC spot ETF proposals, no concrete evidence supported this claim.
Contrary to such rumors, a recent filing from Fidelity Wise Origin revealed that the approval process for BTC spot ETF was still ongoing.
BTC spot ETF sees new application; approval is yet to come
On January 3, the Fidelity Wise Origin Bitcoin Fund filed with the U.S. Securities and Exchange Commission (SEC). The filing of Form 8-A showed that it intended to register its shares as securities listed on the Cboe BZX Exchange.
While some quarters celebrated this filing as an endorsement, says Bloomberg analyst James Seyffart made clarifications about X (formerly Twitter). He stated that this was a securities registration, and not a confirmation of the approval of BTC spot ETF.
According to Seyffart, the entire approval process includes the 19b-4 approval and the issuance of the effective, approved or completed S-1 document. However, this has yet to happen.
Notably, a similar filing was filed by Bitwise on December 29, but it received less attention than the recent Fidelity Wise Origin filing.
Correction, no response
AMBCrypto’s analysis of Bitcoin’s funding rate on Mint glass has been on an upward trend since about December 29.
The graph shows that the financing rate rose to approximately 0.03% on December 26 and rose to 0.05% on December 28. There was then a decline, but in the new year the trend gained strength.
On January 2, this amounted to 0.06%, the highest point in recent months. At the same time, Open Interest amounted to over $19 billion.
Source: Coinglass
At the last update, the funding rate was around 0.01%, while the open interest remained above $18.5 billion. The current downturn seemed like a correction rather than a reactionary reaction.
Expectations pointed to a possible rebound in the coming days.
Bitcoin is experiencing massive, long-term liquidations
The recent decline in Bitcoin prices has led to significant liquidation of long positions. This was the highest level in recent months, as AMBCrypto noted via Coinglass.
As of January 3, long liquidation volume was over $137 million, while short liquidation volume was approximately $27 million. However, at the time of writing, short liquidations have taken the lead as prices have seen a slight increase.
The liquidation volume for shorts reached approximately $7.8 million, surpassing the long liquidation volume, which was less than $1 million.
Source: Coinglass
Read Bitcoin’s [BTC] Price forecast 2024-25
Despite rumors swirling about the possible rejection of Bitcoin spot ETF proposals, there remains optimism and a positive outlook regarding their approval.
Some predictions suggest that ETF approval could happen in January, with a more specific time frame between the 8th and 10th of the month.