The Bitcoin (BTC) rate dropped sharply by more than 7%, immediately reaching $40,383 against the stablecoin Tether USD (USDT) on the Binance exchange. Then the price of BTC partially recovered, and at 16:30 Moscow time the first cryptocurrency was trading at $42.5 thousand. A day before the correction began, the price of BTC for the first time since April 2022 exceeded the level of $45 thousand, writes RBC Crypto.
A sharp drop in the price of the first cryptocurrency provoked a massive liquidation of margin positions of traders on crypto exchanges. According to Coinglassin just an hour, the total amount of forcedly closed positions exceeded $500 million, and most of the traders subjected to liquidation took long positions, that is, they expected continued growth of Bitcoin and other cryptocurrencies.
The fall in the price of Bitcoin occurred against the backdrop of the publication of an analytical report by Matrixport, in which the authors wrote that the US Securities and Exchange Commission (SEC) for a number of reasons will reject applications to launch a spot exchange-traded fund (ETF) for Bitcoin from all applicant companies, including BlackRock and Fidelity. According to their estimates, such funds will be able to meet all regulatory requirements no earlier than the fourth quarter of 2024.
Other coins from the top 10 by capitalization also fell sharply in price over the past 24 hours. The second largest cryptocurrency, Ethereum (ETH), is trading at $2,236, having lost about 6.6% in price over the past day. Solana (SOL) and XRP tokens from Ripple Labs lost 12% per day, Cardano (ADA), Dogecoin (DOGE) and Avalanche (AVAX) dropped by 10%. BNB from the Binance exchange has lost less value than other coins from the top ten and is trading at $315.
Source: Cryptocurrency
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