Bitcoin (BTC) experienced a tumultuous trading session today, dropping to $35,774.80, a 5.09% decline, after bouncing around the key $36,000 support level earlier in the week. The leading cryptocurrency’s volatility comes amid ongoing speculation regarding the potential approval of a U.S. exchange-traded fund (ETF) based on the spot price of bitcoin, which has been delayed by regulators.
Earlier today, BTC experienced a significant pullback after Wall Street opened, falling to $36,470 for a daily loss of over $1,000. This pattern echoed previous weekly events where bitcoin struggled to maintain new highs, resulting in long liquidations. Today’s market saw the liquidation of $21 million in BTC longs, a significant decrease from Monday’s $120 million liquidation.
Despite the current pullback and liquidations, some market analysts such as CrediBULL Crypto see this as an opportunity for accumulation, suggesting that there could be a retest of the local bottom at $34,600. In the last 24 hours, CoinGlass reported market liquidations totaling $217.79 million from over 77,200 traders, with bitcoin accounting for $61.42 million of that amount.
The broader cryptocurrency market has mirrored bitcoin’s downturn. Ethereum (ETH) fell 4.2% to $1,962.13, despite positive sentiment earlier in the week following news of BlackRock’s (NYSE:BLK) iShares Ethereum Trust filing with the SEC. Other major altcoins such as Solana (SOL), Cardano (ADA) and XRP also experienced price declines.
Market watchers are closely monitoring the development of the first U.S. bitcoin spot price ETF. Key indicators suggest that another attempt to reach the $38,000 – $40,000 range is plausible, despite concerns about a potential market correction. Any news on the ETF could act as a catalyst for Bitcoin’s price direction.
