“Bitcoin’s rollercoaster ride continues as its volatile nature sparks over $147 million worth of liquidations, leaving traders on the edge of their seats and highlighting the need for caution in this ever-fluctuating digital currency market.”
Bitcoin’s price has experienced a slight retracement from its recent high above $35,000. This retracement has resulted in the liquidation of over $147 million in leveraged positions over the past 24 hours, with shorts being hit the hardest. The volatility index for bitcoin has also ticked up to over 2% on Wednesday.
Despite this retracement, Luke Nolan, a CoinShares Research Associate, remains confident in the resilience of the digital asset. He believes that a full retrace of the price is unlikely without a decay in the spot bitcoin ETF narrative. Nolan also expressed optimism regarding the potential approval of a spot ETF by the SEC by early 2024, although he acknowledged the possibility of new reasons for rejection.
Nolan highlighted the supportive role of European ETP inflows in sustaining bitcoin’s upward trajectory. He noted that funding rates are positive and traders are positioning themselves long, indicating a positive sentiment in the market. Additionally, bitcoin has shown resilience in the face of broad-based equity weakness, further exemplifying its potential as a market hedge.
While bitcoin shares some flight to safety characteristics with gold, the recent movement in its price is primarily driven by the anticipation of spot ETF approval and subsequent flows.
Please note that the information provided in this article is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.