Home Business News Bitcoin loses 8%, with $1 billion dollars vanishes from the crypto market

Bitcoin loses 8%, with $1 billion dollars vanishes from the crypto market

10th Nov 23 11:56 am

The price of Bitcoin (BTC) fluctuated during Friday’s transactions, hovering around $36,546.

This comes after a significant increase in prices during yesterday’s trading, reaching a level of $38,400, as investors’ hopes in the Bitcoin market rose regarding the approval of the Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).

As a result, the price of Bitcoin rose by approximately 8%, surpassing important resistance levels of $36,000 and $37,000 to reach the highest daily level above $38,400. Over $1.56 million was liquidated from short positions.

However, this increase was short-lived as prices resumed a decline of around 8%, leading to the liquidation of up to $17 million from long-term positions, with the disappearance of approximately one billion dollars in open position benefits within a few hours.

I believe the short-term negative pressure is an unusual situation in the cryptocurrency markets and may result in a rapid increase in the price of Bitcoin.

This occurs when there are multiple uncovered selling positions, indicating that many investors are betting on a decline in the price of Bitcoin. The uncovered pressure begins when the price unexpectedly jumps higher and gains momentum due to a large number of sellers exiting their positions.

This sudden price movement in Bitcoin comes as Bitcoin investors continue to await approvals for Bitcoin ETFs, amid expectations of the U.S. Securities and Exchange Commission (SEC) approving all 12 applicants for exchange-traded BTC funds. This coincides with the approaching anniversary of the FTX disaster, which has been in bankruptcy proceedings for almost a year.

The U.S. Securities and Exchange Commission has initiated discussions with Grayscale Investments (GBTC) to discuss details about its application to convert the Bitcoin Trust product into an immediate Bitcoin ETF.

After a U.S. appellate court ordered the Securities and Exchange Commission to review the exchange-traded application of Grayscale in October, the appellate court in the District of Columbia had previously ruled that the regulatory agency’s rejection of the application was incorrect and unacceptable, giving strength to cryptocurrency markets based on the potential regulation of this market, making it safer and more credible.

I also believe that the main factor behind yesterday’s sudden rise in the price of Bitcoin is the increase in MicroStrategy’s stock, a software intelligence company that periodically adds Bitcoin to its portfolio, by approximately 4%. The company’s stock often rises or falls with the value of Bitcoin.

We can also say that this increase in the cryptocurrency markets is an extension of the rise that began last October, attributed to the increased likelihood of the SEC approving exchange-traded investment funds that directly hold Bitcoin, known as immediate Bitcoin exchange-traded funds.

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