As we approach the busiest week of the year for Bitcoin (BTC), the expected volatility is unfolding. Sudden trades have caused fluctuations in price, with the leading cryptocurrency spiking to $47,248. This surge was triggered by a wave of heavy buying within just an hour. However, these voluminous transactions continue to influence the market.
No decision on a spot Bitcoin ETF has been announced yet, but large players are still causing market waves with their heavy trades. BTC’s price plummeted from $47,000 to $45,500 within 15 minutes due to a sudden sell-off. At the time of writing, BTC is valued at $46,500.
Increased volumes on the CME and accumulating positions in futures are contributing to heightened volatility. We can expect to see sharp movements in both directions as liquidation builds up in certain zones. The recent drop resulted in the liquidation of $400 million in open positions and $36 million in liquidations, but was quickly followed by the opening of $200 million in new positions.
The market’s reaction suggests that the sell-off was more of a liquidity hunt rather than a response to insider news such as a rejected ETF proposal.