Bitcoin (BTC) experienced significant volatility after the launch of the first BTC Exchange-Traded Funds (ETFs) in the United States.
BTC rose above the $49,000 threshold, marking the highest level since December 2021, immediately after these ETFs began trading. However, the cryptocurrency quickly fell nearly 4% within the one-hour candle, plummeting to around $46,000, according to CryptoSlate facts.
This turbulent price movement resulted in the liquidation of trading positions of over $50 million held by crypto traders who speculated on digital currency prices throughout the hour. Mint glass facts points to broader losses, with speculators seeing $120 million evaporate in four hours and $175 million in the last twelve hours.
Notably, most of these losses were suffered by long traders or investors who expected further price appreciation for the primary cryptocurrency.
Additionally, BTC trading volume topped $60 billion at the time of writing, further indicating the asset’s high trading activity during the reporting period.
Bitcoin ETFs record trading volume
Meanwhile, the newly launched spot Bitcoin ETFs are attracting massive attention, with trading volume exceeding $2.3 billion.
Bloomberg Intelligence analyst James Seyffart pointed out that these ETFs exceeded $1.2 billion in trading volume during the first 30 minutes of trading.
“It’s impossible to know how much of this is flowing. We may know tonight. Although I’d wager that a significant portion of it is indeed streams. I would also be willing to bet that a large portion of GBTC trading volume is outflows,” Seffart said clarified.
Bloomberg analyst Eric Balchunas said Grayscale’s new spot Bitcoin GBTC ETF and ProShares’ futures-based Bitcoin Strategy ETF (BITO) are among the top 10 ETFs in terms of trading volume today. Additionally, BlackRock’s IBIT and Fidelity’s FBTC are in the top 25.
Meanwhile, Yahoo Finance shows that BlackRock’s IBIT and Grayscale’s GBTC are among the trending tickers of the day.
The post Bitcoin’s Brief Rally to $49,000 and Subsequent Drop to $46,000 Liquidates $100 Million in 4 Hours appeared first on CryptoSlate.