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Bitcoin Falls Below $40,000, Triggering $230 Million in Liquidations

Bitcoin (BTC) fell below $40,000 on Monday for the first time since early December as a wave of ETF outflows pushed the asset into deeper waters.

Over $236 million worth of transactions were liquidated in the last 24 hours, including $208 million worth of long positions.

  • Bitcoin is trading for $39,504 at the time of writing – a price last seen for the asset on December 2, 2023.
  • According to Coinglass, over 90,000 traders were liquidated in the last 24 hours. The largest liquidation occurred on Bybit in a $5 million BTC/USD trade.
  • Since Bitcoin spot ETFs were approved for trading on national securities exchanges on January 10, Bitcoin has been on a downward trend.
  • While new ETF products accumulated billions of dollars in inflows, their impact on the market was largely offset by massive outflows from the Grayscale Bitcoin Trust (GBTC).
  • Since converting to an ETF, GBTC's stock discount has been brought back to the same level as underlying BTC holdings, delivering big profits to some of its previous buyers.
  • Many of those buyers are now cashing out, which has resulted in Grayscale selling over $500 million in BTC daily as the fund redeems its shares.

BTC/USD. Source: TradingView.

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