Bitcoin is struggling to maintain the $44,300 level amidst high volatility, contrary to expectations of a higher price ahead of ETF approval day. The SEC’s Twitter account hack, which falsely hinted at a spot Bitcoin ETF approval, caused a brief price surge to $48,000 before plummeting upon the SEC Chairman’s announcement of the hack.
The price fluctuation led to over $90 million in leveraged Bitcoin positions being liquidated. Speculators who had taken highly leveraged positions in anticipation of the ETF decision were caught off-guard, resulting in significant losses.
According to Coinglass, total liquidations for all leveraged crypto positions amounted to $230 million, predominantly affecting long positions. Analysts had largely anticipated a price increase with the ETF approval, but the market remains volatile with critical first-day volumes.
CryptoQuant’s report warns investors of potential sudden price corrections despite ETF approval. The past week showcased how speculative high-volume selling could swing BTC prices by $1500, with market makers’ absence leading to thin order books, enabling speculators to influence prices significantly.
The report suggests an increase in Bitcoin demand post-ETF approval but cautions that several on-chain indicators point to a price correction. The current circulating supply is at a high of 90.23%, indicating a large number of investors poised to profit upon selling.