Home ┬╗ Bitcoin Bears Lose Big as U.S. Bitcoin ETF Approval Nears

Bitcoin Bears Lose Big as U.S. Bitcoin ETF Approval Nears

 Traders Suffer $100M in Losses Amidst Speculation on ETF Approval.

by Alexander
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In a surprising turn of events, traders betting against Bitcoin faced significant losses, totaling over $100 million in the last 24 hours. This development coincided with a sudden surge in Bitcoin prices, reaching over $47,000 for the first time since March 2022. The market saw a 9% spike in Bitcoin on Monday, triggering a cascade effect.

Shorts Liquidation Hits $155 Million

Futures tracking crypto markets experienced approximately $155 million in shorts liquidated, predominantly within U.S. trading hours. Notably, OKX and Binance users bore the brunt, with losses totaling $84 million and $71 million, respectively. This abrupt market shift left traders reeling as their bets against rising Bitcoin prices were swiftly overturned.

Rising Open Interest Indicates Continued Volatility

The aftermath of the liquidation event revealed an 8% surge in open interest, reflecting a heightened willingness among traders to open new positions. This suggests an anticipation of sustained market volatility. Liquidations occur when traders fail to meet margin requirements for leveraged positions, prompting exchanges to forcibly close positions due to potential losses.

Bitcoin ETF Approval Speculation Spurs Market Movement

Monday’s price surge in Bitcoin was closely linked to growing expectations of a U.S. Bitcoin exchange-traded fund (ETF) receiving approval. Market participants observed potential issuers, including BlackRock and Grayscale, submitting offering fees to the U.S. Securities and Exchange Commission (SEC). This crucial step brings the long-awaited Bitcoin ETF closer to reality.

SEC Decision Looms, Issuers Gear Up for Competition

As the SEC’s final decision on the 13 proposed ETFs approaches, issuers are gearing up for potential competition. Offering fees were filed by various issuers, with some opting for no fees for the first six months or incentives tied to assets under management (AUM). The SEC is expected to announce its decision on Wednesday, with market participants eagerly awaiting the outcome.

In related developments, SEC officials reportedly engaged with prospective issuers, addressing minor details in amended S-1 forms. These filings are anticipated on Tuesday, adding an extra layer of anticipation to the unfolding developments in the cryptocurrency market.

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