Bitcoin’s market capitalization experienced a significant drop of around $50 billion in the last 24 hours. This drastic change was triggered by a fake approval post of spot exchange-traded funds (ETF) that appeared on the U.S. Securities and Exchange Commission (SEC) official handle. The top cryptocurrency’s market capitalization fell from $938 billion to as low as $890 billion immediately after the false news surfaced. However, it has since recovered to around $900 billion.
The fake news caused Bitcoin’s value to surge to nearly $48,000, leading to premature celebrations among crypto enthusiasts who were anticipating this groundbreaking decision. However, the asset price swiftly plummeted to $45,100 after it was revealed that the SEC’s account had been compromised. SEC Chair Gary Gensler refuted the news of the supposed ETF approval, which led to a sharp correction in Bitcoin’s value.
This wild price movement also affected the broader market. Large-cap alternative cryptocurrencies like Cardano, Avalanche, Solana, BNB, and XRP recorded losses of more than 2% each. The entire cryptocurrency market is down 1.15% over 24 hours. However, Ethereum, the second-largest cryptocurrency by market capitalization, bucked the trend and is up 2.8% over the same period.
The volatile price movement resulted in nearly $220 million worth of liquidation for more than 71,000 traders who held positions in the market. Data shows that traders betting on further price increases bore the brunt of the losses, with around $134 million liquidated. Conversely, traders with bearish sentiments—short traders—lost $83.1 million during the reporting period. Investors speculating on the price movements of Bitcoin and Ethereum faced a collective loss of $126 million, primarily impacting long traders in these assets.
A significant $6 million long position in Bitcoin was liquidated on the Bybit exchange, marking the most significant single liquidation order observed during this period. Crypto traders using the Binance platform accounted for nearly 38%, or $82.35 million, of the total losses suffered in the market. Users of OKX were liquidated for $72.82 million, while those on ByBit lost $36 million.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Gary Gensler |
| Companies | OKX, Bybit, U.S. Securities and Exchange Commission, Binance |
| Currencies | Cardano, Ethereum, Avalanche, Bitcoin, Solana |
| Securities | None |
