CryptoETHCrypto Markets Experience Turbulence Amid Regulatory Speculation

Crypto Markets Experience Turbulence Amid Regulatory Speculation

Cryptocurrency markets underwent significant volatility on Thursday as traders anxiously awaited a regulatory decision regarding spot-based ether exchange-traded funds (ETFs) in the United States.

In a tense hour leading up to the eventual approval, the price of ETH experienced sharp fluctuations, initially dropping to $3,500 around the time of traditional U.S. market closing, then rallying to nearly $3,900 upon unconfirmed reports of approval before settling above $3,800 following confirmation.

Bitcoin (BTC) also witnessed a tumultuous episode, dipping to the low-$66,000s before surging to $68,300, only to retreat below $68,000. However, ETH displayed relative strength, registering a 1.5% increase over the past 24 hours, while BTC recorded a nearly 3% decline during the same period. The CoinDesk 20 Index, reflecting the broader market, declined by 1.6% throughout the day.

Against this backdrop of volatility, liquidations across leveraged crypto derivative positions surged to over $350 million, marking the highest figure since May 1, according to data from CoinGlass.

Liquidations occur when an exchange closes a leveraged trading position due to the trader’s inability to meet margin requirements or sustain losses. The majority of the liquidated positions were long positions speculating on rising prices, totaling approximately $250 million, indicating that over-leveraged traders were caught off-guard by the sudden price drop. ETH traders bore the brunt of the liquidations, with $132 million in losses, followed by $70 million in BTC derivatives liquidations.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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