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Bitcoin

<p>In the past 24 hours, futures traders speculating on higher cryptocurrency prices have witnessed approximately $217 million in liquidations. The market downturn comes as the approval of spot Bitcoin (BTC) exchange-traded funds (<a href="https://www.cryptopolitan.com/south-kore-push-spot-bitcoin-etf-approval/">ETFs</a>) continues to generate a “sell-the-news” sentiment, with traders showing no signs of slowing down their contrarian bets.</p> 
<h2 class="wp-block-heading" id="grayscale-s-bitcoin-holdings-and-etf-shares-impact">Grayscale’s Bitcoin holdings and ETF shares’ impact</h2> 
<p>Concerns regarding cryptocurrency fund Grayscale’s potential sale of its Bitcoin holdings have played a role in the recent price drop. Grayscale, a major player in the cryptocurrency space, moved over $400 million worth of Bitcoin to custodian Coinbase Prime on Thursday. This move is considered a strategic preparation for a potential sale, contributing to the downward pressure on <a href="https://twitter.com/EricBalchunas/status/1748106285663355125" rel="nofollow noopener" target="_blank">prices</a>.</p> 
<p>Verified wallets linked to Grayscale, identified by analysis firm Arkham, have been closely monitored. Additionally, GBTC (Grayscale Bitcoin Trust) shares experienced a 0.9% discount on Thursday, indicating a likelihood of selling pressure in the market.</p> 
<p>However, it’s worth noting that as BlackRock’s IBIT surpassed $1 billion in assets under management (AUM) on Wednesday, other ETFs may be absorbing most of these sales, mitigating the overall impact on the market.</p> 
<h2 class="wp-block-heading" id="bitcoin-s-recent-performance-and-its-ripple-effect">Bitcoin’s recent performance and its Ripple effect</h2> 
<p>Bitcoin’s price dipped below $42,000 late Thursday, marking a 3.7% decline since the previous day and a 15% drop from its December peak of $49,000. This decline had a cascading effect on the broader cryptocurrency market, with Ethereum (ETH) falling 2.5%, Solana’s SOL dropping 6.5%, and Cardano’s ADA losing 5% of its value.</p> 
<p>Amidst this market turbulence, BNB Chain’s BNB outperformed, registering a 0.6% increase. The strength of BNB can be attributed to launchpads on the closely related Binance exchange, where users can stake BNB to gain allocations of new projects listed on the platform.</p> 
<p>The price downturn resulted in significant losses for highly leveraged futures traders betting on higher cryptocurrency prices. A total of $217 million in liquidations occurred, with Bitcoin trades alone accounting for $88 million in losses.&nbsp;</p> 
<p>Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to either partial or total loss of the trader’s initial margin. It happens when a trader cannot meet the margin requirements to keep the leveraged position open.</p>

Crypto market sees $217M in liquidations amid ETF approval and Grayscale speculation

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