In a move that has shocked the entire industry, Bitcoin's crash has resulted in more than $540 million being liquidated from the crypto market in just four hours. In fact, the asset has declined due to concerns over rejection of the Spot Bitcoin ETF. Specifically, it has fallen by up to 9% in the last 24 hours alone.
Financial services firm Matrixport recently released a report suggesting widespread rejection of Bitcoin ETFs. In fact, it expressed concerns about the US Securities and Exchange Commission's willingness to approve the product. Ultimately, the first denials were expected for the upcoming January 10th deadline.
JUST IN: $540,000,000 liquidated from the #cryptomarket in the last 4 hours.
– Watcher.Guru (@WatcherGuru) January 3, 2024
Also Read: Bitcoin Price Falls on ETF Rejection Speculation
The crypto market sees $540 million liquidated due to Bitcoin ETF speculation
In the final months of 2023, the spot Bitcoin ETF decision dominated the digital asset sector. Experts everywhere discussed the possible effects of the approval. Furthermore, the prevailing assumption was that such approval would likely come in the first week of January.
However, that changed due to a recent report that pointed to the possibility of widespread rejections. Subsequently, these speculations led to a massive drop in the price of Bitcoin and in the last four hours alone, more than $540 million was liquidated from the crypto market.
Also Read: Bitcoin Breaks $45,000: $50,000 to Eye Ahead of ETF Decision
Bitcoin (BTC) celebrated the new year by breaking above $45,000 for the first time since 2022. However, that quickly changed as the cryptocurrency fell as much as 9% in the last 24 hours. In return, most of the gains from January 1st were reversed and there were massive liquidations on the derivatives exchanges.
Just last week, Reuters reported that a Bitcoin ETF approval could come as early as “Tuesday or Wednesday,” according to their sources. However, Matrixport noted that the applications did not meet the “critical requirements” that would precede the SEC’s rejection of the investment product.
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