Bitcoin Liquidations Surge to $138 Million Amid Market Volatility

Market turmoil triggers significant liquidations of leveraged crypto positions, surpassing $138 million in 24 hours.

Bitcoin Plunge and Liquidations:

Bitcoin drops over 2.5%, breaching the $41,000 mark, resulting in total liquidations exceeding $138 million.

Long Positions Hit Hardest:

Majority of liquidations involve long positions, causing losses of over $120 million; short positions contribute only around $18 million.

SEC-Approved ETFs Impact:

Bitcoin loses over 7% of its value in the 12 days following SEC approval of multiple spot bitcoin ETFs.

Analyst Predictions:

Despite rallying above $48,000 post-approval, Bitcoin faces a sharp fall to around $43,000, with analysts foreseeing further decline below $40,000.

BitMEX Co-founder's Hedging Strategy:

BitMEX co-founder Arthur Hayes hedges against downside, utilizing BTC puts at a $35,000 strike price.

Heightened Volatility Stats:

Annualized bitcoin volatility surges from 46% to over 52% post-SEC approval of spot bitcoin ETFs.

Leveraged Bitcoin Positions Liquidated:

Increased volatility results in the liquidation of nearly $30 million worth of leveraged bitcoin positions, predominantly long positions.

Decrease in Unrealized Profits:

Unrealized profits among bitcoin holders drop as sell pressure rises, circulating supply in profit decreases from over 90% to just above 83%.

Despite heightened market volatility, the impact of liquidations and declining profits underscores the challenges facing Bitcoin amid regulatory shifts and increased investor caution.

The current market conditions, marked by heightened volatility and substantial liquidations, pose significant challenges for Bitcoin. The decline in unrealized profits and the dominance of sell pressure indicate a period of uncertainty and caution among investors.