Bitcoin (BTC-USD) showed significant volatility on Tuesday, with its price experiencing a significant sell-off followed by a quick recovery. To shed light on the factors driving this turmoil, Scott Melker, host of The Wolf Of All Streets podcast, joins Yahoo Finance Live.
Melker advises investors following Bitcoin to “get out there and just calm down,” suggesting that the recent selloff was merely “a flood” of leverage that had accumulated in the market. He notes that about $1 billion worth of Bitcoin positions were liquidated on Tuesday, a normal occurrence in cryptocurrency markets.
According to Melker, the underlying trigger for the increased volatility is the recent approval of Bitcoin spot ETFs (exchange-traded funds). These ETFs have attracted “massive daily inflows,” with Melker expecting these inflows to continue and add to the market turmoil.
For more expert insights and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's Note: This article was written by Angel Smith
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