Cryptocurrencies: 12,870
Markets: 940
Marketcap: $ 2.06 T(0.18%)
24h Vol: $ 77.17 B
BTC Dominance: 48.69%

Crypto Market Sees Increased Volatility With Over $215 Million in Liquidations

The cryptocurrency market witnessed a bout of increased volatility over the past week, with more than $215 million in liquidations in a single day. Both Bitcoin (BTC) and Ethereum (ETH) saw sharp swings with many traders getting liquidated. The volatility comes amid speculation that the U.S. Securities and Exchange Commission (SEC) may approve the first spot Bitcoin ETF in the near future.

Bitcoin Rebounds After Sharp Decline

Bitcoin saw a rebound of around 5% to reach $43,116 on December 11 after experiencing a sharp decline of more than 10% from $44,000 to $40,750 within a 24-hour period. However, BTC volatility has doubled according to its 30-day and 60-day moving averages, hitting the highest levels since August 2017.

Ethereum Also Displays High Volatility

Ethereum also exhibited high volatility with an initial drop of around 5% but then a rebound to $2,250. ETH dropped by nearly 9% after almost reaching its year-to-date high of $2,375 on December 11.

Over $215 Million in Liquidations in a Single Day

More than 100,000 traders were liquidated on December 11 and 12, with the total value exceeding $215 million. Liquidated long positions constituted over 51% of the total, showing that most traders incurred losses due to falling crypto prices. Bitcoin liquidations amounted to around $70 million, with two-thirds being short positions.

Potential SEC Approval of Bitcoin ETF Sparks Speculation

The speculation of the SEC potentially approving the first spot Bitcoin ETF has grown. […] An approval could have a bullish impact on BTC’s price according to some analysts.

Samson Mow suggested Bitcoin could rapidly surge to $1 million following a spot ETF approval due to more institutional capital inflow and limited BTC supply on exchanges.


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