Bitcoin Plummets: $540M Liquidated from Crypto Market in 4HRs

• Unexpected Bitcoin Dip Causes $540M Liquidation in Crypto Market Within Four Hours
• Impact of Bitcoin ETF Speculation on Crypto Market
• Bitcoin Above $45,000, Falls Due to ETF Decision Speculation
• SEC's Potential Rejection of Bitcoin ETF

Unexpected Bitcoin Dip Causes $540M Liquidation in Crypto Market Within Four Hours

The industry has been astounded by a sudden decline in Bitcoin$42,260 -0.64% value that has resulted in a $540 million liquidation from the crypto market in a mere four-hour timeframe. This drop is largely attributed to anxieties surrounding the potential rejection of Spot Bitcoin ETF, which has caused a 9% fall in Bitcoin value in just the last 24 hours. Of particular concern is the reluctance of the US Securities and Exchange Commission (SEC) to approve this product, an apprehension recently highlighted in a report by financial services firm, Matrixport. The firm expects initial rejections at the looming January 10th deadline.

Impact of Bitcoin ETF Speculation on Crypto Market

The Spot Bitcoin ETF decision was a dominant topic in the digital asset sector throughout the latter months of 2023. The potential ramifications of an approval were hotly debated by experts, with a strong anticipation for approval in the first week of January. However, recent report warnings of widespread rejections have caused a shift in sentiment leading to Bitcoin's dramatic price drop, resulting in the staggering $540 million liquidation from the crypto market in a single four-hour period.

Bitcoin Above $45,000, Falls Due to ETF Decision Speculation

Bitcoin (BTC) started the new year on a high note, surpassing the $45,000 mark, a price not seen since the previous year. However, this triumph was short-lived as the value has dropped by approximately 9% in the last 24 hours. Consequently, much of the gains achieved on January 1st have been lost, with significant liquidations taking place across derivatives exchanges.

SEC's Potential Rejection of Bitcoin ETF

Last week, Reuters cited sources suggesting a Bitcoin ETF approval could be imminent, possibly arriving as early as Tuesday or Wednesday. However, Matrixport's report indicates that the ETF applications have failed to meet certain critical requirements, suggesting the SEC is likely to reject the investment product.

Edited by Jonathan Stoker