Bitcoin’s Price Plunge Leads to Over $520M in Liquidations

Introduction: During the early hours of Friday in Asia, the price of Bitcoin, the leading cryptocurrency, experienced a significant correction from its peak values. This correction saw Bitcoin’s price plummet to below $68,000, marking a nearly 7.5% decline over the past 24 hours. The abrupt price movement triggered a cascade of liquidations, with the total liquidated positions across the network surpassing $657 million within the same timeframe.

Bitcoin Liquidations

 

Bitcoin Liquidation Dynamics: According to data from Coinglass, the liquidations encompassed over $522 million in long positions and $137 million in short positions over the past 24 hours. Notably, approximately $216 million worth of Bitcoin long positions were liquidated during this period. The bulk of these liquidations occurred on major cryptocurrency exchanges, with Binance and OKX witnessing liquidations amounting to $248 million and $236 million, respectively.

Impact on Ethereum and Other Cryptocurrencies: The downturn in Bitcoin’s price also exerted pressure on Ethereum, the second-largest cryptocurrency by market capitalization, which dipped below the $4,000 mark. Presently trading at $3,700, ETH has seen a decline of nearly 7.3% over the past 24 hours, mirroring Bitcoin’s downward trajectory.

Bitcoin Spot ETF Activity: Despite the market turbulence, Bitcoin spot ETFs recorded a noteworthy net inflow of $132 million on March 14. However, Grayscale’s BTC ETF GBTC experienced a single-day net outflow of $257 million. Notably, the BlackRock ETF IBIT emerged as the Bitcoin spot ETF with the largest single-day net inflow, amounting to $345 million, according to data from SoSoValue.

Historical Net Inflow and ETF Performance: The total historical net inflow of IBIT has now reached $12.37 billion, while the VanEck ETF HODL recorded a single-day net inflow of approximately $137 million, contributing to its total historical net inflow of $364 million. As of the latest data available, the total net asset value of Bitcoin spot ETFs stands at $57.86 billion, with the ETF net asset ratio reaching 4.16%. The cumulative historical net inflow for these ETFs has reached $11.96 billion.

Record Inflows Amid Market Volatility: It’s noteworthy that on March 12, spot Bitcoin ETFs witnessed a remarkable $1.05 billion in net inflows, marking the highest single-day net inflow since their launch. Despite the recent price volatility, investor interest in Bitcoin spot ETFs remains strong, indicating continued confidence in the long-term potential of cryptocurrency investments.

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