As a result of volatile events, major cryptocurrencies witnessed a significant decline on Thursday evening as traders investing in long positions faced significant liquidations. According to data from Coinglass, over $200 million in cryptocurrency long positions were liquidated in the last 24 hours, impacting major players in Bitcoin (BTC) price and Ethereum (ETH). This sudden shift in the market occurred due to the introduction of approved spot Bitcoin ETFs and the opposing views of market analysts.
Bitcoin price dropped: Longs were liquidated
The past 24 hours have seen a staggering $200 million worth of cryptocurrency long positions liquidated; BTC and ETH were especially affected. Bitcoin long positions valued at over $65 million and Ethereum long positions valued at over $27 million faced liquidation, leading to the liquidation of a total of 90,781 investors. The largest liquidation order of $7.31 million for the BTC-USDT pair was placed on Binance.
Since the launch of approved spot Bitcoin ETFs on January 11, there has been a modest increase in the price of Bitcoin, followed by a decline of approximately 13%. Notably, new spot ETF issuers collectively purchased more than 68,000 Bitcoins in the first week of trading, while Grayscale’s GBTC turned over nearly 40,000 Bitcoins. The net increase in Bitcoin ETFs of nearly 28,000 Bitcoins reflects the mixed fortunes of recently launched investment vehicles.
Statements by analysts
Cryptocurrency analyst Michael Van de Poppe noted significant market movements and highlighted key buying levels, saying, “Below $41,000 is the beginning of buying the bottom.” Pseudonymous analyst Rekt Capital suggested that potential resistance remains for Bitcoin and a breakthrough is expected after the Halving. On-chain analytics firm Santiment reported long-term optimism about SEC approval of an 11-start Spot Bitcoin ETF but warned that potential market sentiment would turn negative.
Warning came from Jim Cramer
Jim Cramer, the well-known host of CNBC’s “Mad Money”, issued a stern warning about the future of Bitcoin on the X social media network. Known for his sharp financial commentary, Cramer pointed out the troubled start of Bitcoin sales and emphasized: “Some people will probably try to resist here, but as we said last night, you can’t have twice the assets. Expecting an ETF worth hundreds of billions of dollars, then almost no one shows up.” says.
In a recent episode of “Mad Money,” Cramer suggested that Bitcoin may be “peaking,” predicting a potential decline in value. On January 12, he reiterated his belief on Twitter that Bitcoin had reached its peak. Cramer’s prediction turned out to be true, considering that the price of Bitcoin fell below $41,000 on Thursday. However, the cryptocurrency recommendations made by the famous name are generally considered as a reverse indicator among investors.
Cramer has also spoken about the Bitcoin price before
Cramer further commented on the latest ETF launch, calling it a potential “sell the news event.” The conversion of the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF last week led to significant outflows of over $1.5 billion. JPMorgan analysts led by Nikolaos Panigirtzoglou expressed concerns about further outflows, potentially reaching $3 billion, which could put further downward pressure on Bitcoin prices.
Economist and noted cryptocurrency skeptic Peter Schiff also weighed in, warning about the impact of new SEC regulations on Bitcoin’s transaction costs and future price. While financial experts remain cautious, the cryptocurrency market faces a critical juncture with potential consequences for its future course. Investors and analysts are closely monitoring these developments to navigate the complex landscape of digital assets.
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