Ethereum and Bitcoin prices experienced a sharp drop after a significant rally
Ethereum (ETH) and Bitcoin (BTC) experienced a sudden downturn after what many investors saw as a promising rally. Ethereum's price on the Bitstamp exchange took a sharp dive, falling to $1,973 following a peak of $2,050 earlier in the trading session.
BTC mirrored this fall, plunging down to $35,600 from its day's high of $37,972.
— James Seyffart (@JSeyff) November 9, 2023
Massive liquidations
In the span of one hour, the market saw $11.22 million worth of liquidations, according to CoinGlass data. The liquidations were almost evenly split between long positions ($5.67 million) and short positions ($5.55 million).
Looking at a broader timeframe of four hours, the liquidations escalated significantly to $280.76 million. The majority of this amount came from long position liquidations, which totaled $174.08 million, compared to $106.68 million from short positions.
In a full day, the total liquidations amounted to $475.71 million. Interestingly, in this timeframe, the trend reversed, with short positions seeing more liquidations ($268.07 million) than long positions ($207.64 million).
Speculation about crypto ETFs
The crypto community is now abuzz with speculation following the registration of the iShares Ethereum Trust in Delaware.
This move is reminiscent of the registration of BlackRock's iShares Bitcoin Trust, which occurred just a week before their formal ETF application with the SEC.
The registration is seen by many as a precursor to mainstream adoption that could potentially pave the way for increased institutional investment in Ethereum.
Meanwhile, the possibility of a Bitcoin ETF in the United States seems to be gaining ground. Analyst Alex Dovbnya has reported a potential "tsunami" of spot Bitcoin ETF approvals by January 2024. Seyffart from Bloomberg Intelligence cites a "90% chance" by early January 2024.