The market for cryptocurrencies, including owners of Bitcoin (BTC), has been waiting for the US Securities & Exchange Commission (SEC) to make any moves on recent announcements that the financial body had a short window of eight days to approve a spot BTC exchange-traded fund (ETF). The markets are becoming nervous as the window is closing quickly.
Bitcoin sells out $120 million worth of long positions, falling 5%.
In anticipation of SEC news, the price of bitcoin (BTC) fell by about 5% in the first hours of Tuesday’s New York session. The market is responding unfavourably to the SEC’s lack of clarity and indication over their decision to approve or reject the ETF applications, with just three days remaining before the deadline. Since the sell-off on Saturday, the cryptocurrency king has been exhibiting signs of vulnerability.
About $120 million in long Bitcoin positions have been liquidated as a result of the move, which caught longs off guard who were attempting to outwit the SEC’s ruling.
Up to $6.14 million in short bets were also liquidated after their stop losses were reached, in addition to the long holdings. With this action, the total open interest dropped from $16.50 billion to $16.41 billion in less than a day, wiping off about $90 million in aggregate.
Altcoins also suffer
As previously reported, cryptocurrencies have also experienced losses, with total altcoin liquidations reaching $194.57 million. In the face of intense selling pressure, the market value of many altcoins has plummeted, falling anywhere from 4% to 10%. It follows after investors began to wager on cryptocurrencies as a result of the spot ETF hype inflating the market. Although there have been significant rallies in altcoins over the past few days, the delay that initially affected Bitcoin has also had an impact on them.
Despite the disaster, the SEC has only three days left before the window shuts, or traders might have to wait until January 10, 2024, which is the hard date by which the SEC must declare its decision regarding the 12 applications.