Bitcoin On A Roller Coaster Ride As ETF Mania Continues
By Laxmikant Khanvilkar
Virtual digital assets (VDA) experienced one of the biggest volatile session in recent times with price Bitcoin (BTC) topping $64,000 momentarily before slumping to $59,000 levels.
The largest cryptocurrency by market capitalisation has recovered to trade at $61,589 currently, up 7.9% during the last 24-hours.
The wild price swing caused a total of $700 million in liquidations for all digital assets, flushing out leveraged derivatives trading positions, CoinGlass data shows. Usually, the liquidation of derivatives positions is triggered by margin calls. As traders fail to meet initial margin the exchange intervenes to close such positions.
Wednesday’s action was likely the largest wipe-out since last August, when bitcoin’s sudden drop to $25,000 liquidated $1 billion of derivatives positions across all crypto assets.
Interestingly, this wild price swing also saw the U.S.-listed spot bitcoin exchange traded funds (ETFs) post a record breaking trading volume.
BlackRock’s IBIT clocked $3.3 billion of shares traded, more than double the previous session. In comparison, the spot ETFs combined booked nearly $8 billion in trading volume.
The trading euphoria reverberated across the broader VDA market.
Ethereum (ETH), the second-largest crypto asset, climbed towards $3,500. It recently traded 5.7% strong at $3,445.
Other large tokens such as Solana’s native token (SOL), Cardano’s ADA, AVA, Dogecoin, and others trading in the positive territory.
The global crypto market cap increased 6% to $2.28 trillion in the last 24 hours. Simultaneously, the total crypto market volume rose 59.7% to $178.6 billion. Total volume in DeFi is currently $13.6 billion, and all stablecoins are $160 billion, representing 7.6% and 89.8%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 53.1%, up 0.99% over the day.
The IC15 index, the barometer of the top fifteen tokens, surged 6.9% to 77.869.
Meanwhile, the Wall Street giant Morgan Stanley is in the midst of performing due diligence to add spot bitcoin ETF products to its brokerage platform, media reports suggested. Being a registered investment advisor (RIA), the move could open up big money investment floodgates. Morgan Stanley’s alternative investments arm manages over $150 billion in assets.
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