Bitcoin’s brief rally to $49k and subsequent decline to $46k liquidates $100M in 4 hours Bitcoin’s brief rally to $49k and subsequent decline to $46k liquidates $100M in 4 hours
The newly launched Bitcoin ETFs are enjoying record trading activities within their early hours of trading.
1 min read
Updated: Jan. 11, 2024 at 5:29 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin (BTC) experienced significant volatility following the launch of the first spot BTC exchange-traded funds (ETFs) in the United States.
BTC surged above the $49,000 threshold, marking its highest level since December 2021, immediately after these ETFs began trading. However, the cryptocurrency rapidly declined almost 4% within the one-hour candle, plummeting to around $46,000, as per CryptoSlate data.
This turbulent price movement resulted in the liquidation of trading positions exceeding $50 million, held by crypto traders engaged in speculation on digital currency prices during the hour. Coinglass data indicates broader losses, with speculators seeing $120 million evaporate within four hours and $175 million over the past 12 hours.
Notably, most of these losses were incurred by long traders or investors who had anticipated further price appreciation for the primary cryptocurrency.
Additionally, BTC’s spot trading volume had exceeded $60 billion as of press time—further indicating the asset’s high trading activity during the reporting period.
Bitcoin ETFs record trading volume
Meanwhile, the newly launched spot Bitcoin ETFs are attracting massive attention, with their trading volume exceeding $2.3 billion.
Bloomberg Intelligence analyst James Seyffart pointed out that these ETFs crossed $1.2 billion in trading volume during the first 30 minutes of trading.
“No way to know how much of this is flows. We will potentially know this evening. Though I would bet a significant portion of it is indeed flows. Would also bet that a lot of the GBTC trading volume is outflows,” Seffart clarified.
Bloomberg analyst Eric Balchunas said Grayscale’s new spot Bitcoin GBTC ETF and ProShares’ futures-based Bitcoin Strategy ETF (BITO) are among the top 10 ETFs in trading volume today. Additionally, BlackRock’s IBIT and Fidelity’s FBTC are in the top 25 ranking.
Meanwhile, Yahoo Finance shows that BlackRock’s IBIT and Grayscale’s GBTC are among the trending tickers for the day.
Bitcoin Market Data
At the time of press 5:29 pm UTC on Jan. 11, 2024, Bitcoin is ranked #1 by market cap and the price is up 0.63% over the past 24 hours. Bitcoin has a market capitalization of $900.03 billion with a 24-hour trading volume of $62.19 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 5:29 pm UTC on Jan. 11, 2024, the total crypto market is valued at at $1.76 trillion with a 24-hour volume of $139.36 billion. Bitcoin dominance is currently at 51.19%. Learn more about the crypto market ›
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
