Bitcoin’s price has fallen by over 7% in the week since the US Securities and Exchange Commission, SEC, approved multiple spot ETF filings.
A spot bitcoin ETF is a financial product that investors hope will open the gateway for mainstream capital to flood the crypto market.
There has been over $11bn (£8.67bn) in spot bitcoin ETF trading volume in the four days of trading since the funds were launched from Wall Street players, such as BlackRock (BLK) and Franklin Templeton (BEN).
However, over most of the past week the price of bitcoin (BTC-USD) has traded just below the $43,000 mark. Bitcoin’s value has dropped by more than 7% from the brief highs observed shortly after the approval of the ETF, when the price exceeded $46,000 last Thursday.
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Bitcoin liquidations rise
The price of bitcoin as of the time of writing is $42,652, according to Coingecko data. In the past 24 hours, the digital asset has experienced price volatility.
Large price swings caused almost $20m in liquidations of leveraged bitcoin positions on cryptocurrency exchanges, according to Coinglass data. Of these liquidations, the majority, around $12m, consisted of long positions.
According to CoinGlass data, the overall crypto market witnessed the liquidation of over $60m in long positions in the past 24 hours. This contributed to a total of $90.28m in total liquidations across major cryptocurrency exchanges.
Read more: Bitcoin rally stokes $50k speculation over spot ETF anticipation
Liquidations tend to occur during volatile price swings, when prices rise or fall sharply. During these market conditions, there is either a rush to buy or sell.
The majority of liquidations in the past 24 hours were long positions held by derivatives traders who were anticipating the cryptocurrency’s value to rise. However, due to the price decline of bitcoin, they were forced to sell at a loss to minimise further losses.
Read more: Bitcoin ETF boom won’t mimic previous rallies, says VC founder
According to data from Coingecko, the global cryptocurrency market cap today is $1.77tn, a slight 0.22% increase in the past 24 hours.
The market cap of bitcoin is at $839bn, with the world’s largest digital asset holding a 47.47% dominance over the rest of the cryptocurrency market.
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