Key Points
- Bitcoin’s price fell from above $70,000, leading to a surge in liquidations.
- The U.S. Securities and Exchange Commission approved eight spot Ethereum ETFs.
Bitcoin’s price experienced a dip from over $70,000, causing a surge in market liquidations.
On Tuesday, the price of the largest digital asset by market cap briefly exceeded $70,000 before it dropped by 3.5% to about $67,000. This sharp decline led to a significant number of leveraged position liquidations in the market.
Currently, Bitcoin is trading at around $67,400, which is 8.5% less than its all-time high of $73,737 achieved on March 14.
Impact on Ethereum and Other Cryptocurrencies
The market’s volatility, especially with the approval of spot Ethereum ETFs, led to the liquidation of over $378 million in leveraged positions in the last 24 hours. Long positions made up $295 million of this total, according to CoinGlass data.
Ethereum led these liquidations, with over $147 million liquidated, including $105 million in long positions.
Liquidations happen when a trader’s position is automatically closed because they lack enough funds to maintain their position, often due to market movements that deplete their initial margin or collateral.
Meanwhile, Ethereum’s price has also seen significant volatility, reaching a new monthly high of $3,937 before falling back to $3,710. However, Ethereum’s price has increased by over 20% since the start of the week.
Spot Ethereum ETFs Approved
The U.S. Securities and Exchange Commission (SEC) recently approved eight spot Ethereum ETFs from BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark Invest, Franklin Templeton, and Invesco Galaxy. This comes only four months after it authorized spot Bitcoin ETFs.
A spot Ethereum ETF tracks the market price of Ethereum directly, allowing investors to invest in the asset without holding the cryptocurrency themselves. This development was noticeable in the market dynamics of Grayscale’s Ethereum Trust, which saw its discount decrease from -24% to -6% just before the approval.
Despite the approval of the 19b-4 forms, the spot Ethereum ETF issuers’ S-1 registration statements still need to go into effect before trading can start.
