In the recent whirlwind within the cryptocurrency domain, a substantial $460 million in long positions faced liquidation in the past hour alone, triggered by an 8% descent in Bitcoin prices amidst swirling rumors about a potential delay in SEC approval for spot ETFs.
According to insights gleaned from CoinGlass data, long traders bore the brunt of losses, tallying approximately $462 million across major centralized exchanges in the preceding hour.
In the broader 24-hour perspective, a staggering 172,626 traders underwent liquidation, resulting in a cumulative of $557 million in long liquidations and around $58 million in short liquidations.
Prominent crypto exchange OKX led this wave of liquidations, claiming over $230 million, trailed by Binance at $105 million and Huobi at approximately $74 million.
A concentrated surge in liquidations occurred in the recent hour, as illuminated by CoinGlass data, reflecting an aggregated value of $487 million for liquidated positions.
Focusing on futures trading, Bitcoin-linked contracts witnessed a total of $110 million in both short and long liquidations over the past day. Concurrently, Ethereum-related futures observed liquidations surpassing $82 million.
The pinnacle of liquidations coincided with a significant drop in the foremost cryptocurrency's value, plummeting to as low as $40,000. This descent unfolded following a Matrixport report asserting that the SEC is leaning towards rejecting spot Bitcoin ETF applications this month.
Matrixport's projection of a January rejection for Bitcoin Spot ETFs, combined with SEC Chair Gensler's well-known skepticism towards cryptocurrencies, prompted a cautionary statement advising traders to hedge their long exposure. The report forewarns of a potential -20% Bitcoin price drop upon ETF denial, yet maintains a positive outlook for the end of 2024.
As of the current writing, the flagship cryptocurrency is actively trading at $42,379, reflecting a downturn of more than 6% over the past day. Stay informed for real-time updates on this dynamic crypto market scenario.
