Bitrabo Editorial
Fresh data illustrates a surge in long liquidations across various exchanges following the approval of Ethereum ETFs, sparking a sell-off in the market.
Setback in Ethereum Price Post Spot ETF Approval
The US SEC recently granted approval for all eight Ethereum spot exchange-traded funds (ETFs), which stirred up anticipation and trading activity in the market. These ETFs offer a way for traditional investors to gain exposure to ETH’s price movements without directly owning the cryptocurrency.
Similar to the reaction following the Bitcoin spot ETF approval, the market witnessed selling pressure after the news of Ethereum ETF approval surfaced. This triggered a downturn in Ethereum’s price alongside other cryptocurrencies in the space.
Despite the recent dip, Ethereum remains up by over 23% in the past week, with the current price standing at $3,700, ensuring investors still hold significant profits.
The market response to the ETF approval led to sizeable liquidations in the derivatives sector, reflecting an unexpected turn of events in the past 24 hours.
$384 Million Liquidations Recorded in Cryptocurrency Contracts
Data sourced from CoinGlass highlights a substantial liquidation event in the cryptocurrency derivatives market over the previous day, with more than $384 million worth of contracts forcefully closed. Long holders accounted for over $297 million of these liquidations, constituting about 77% of the total liquidation volume.
With Ethereum as the primary focus of the recent market activity, it emerged as the leading contributor to these massive liquidations, surpassing Bitcoin by a considerable margin.