Breaking Crypto News – Key Factors Behind the $400 Million Losses After Ether ETF Approval Failure
Breaking Crypto News – Over the previous day, the SEC approved multiple Ethereum ETFs based on spot prices, which caused significant volatility in the broader crypto market. Excluding stablecoins like Tether’s USDT and Circle’s USDC, CryptoSlate data reveals that losses over 3% were experienced by the top 20 digital assets by market capitalization. The two most valuable digital assets, according to market capitalization, dropped to $3,696 and $67,287, respectively, for Ethereum and Bitcoin.
According to a number of market commentators, the approval of the ETH ETF was a “sell-the-news” moment. Investors had already positioned themselves to benefit from the decision, which they expected. With a weekly increase of around 21.94%, the price of ETH has surged. CryptoSlate reports that the Ethereum futures market reached a one-year high of 3.6 million ETH.
Seems like the market has already priced the Ethereum spot ETF approval. Grayscale’s ETHE discount to ETH has significantly narrowed in the last few days. The same happened between GBTC and Bitcoin as the Bitcoin Spot ETF approval was nearing.
Julio Moreno, head of research at CryptoQuant
News about ETF Driving Ether Price Down Instead of Up
The market’s muted performance cost almost 107,000 cryptocurrency traders losses over $400 million. According to Coinglass statistics, the majority of these losses, or about $107 million, were incurred by ETH long traders who had anticipated that the news about the ETF would raise the price of digital assets. A $12.4 million long Ethereum wager on the Binance exchange was the highest single liquidation.
FAQ
Is Crypto Liquidation a Bad Thing?
Liquidation can have serious repercussions in the cryptocurrency industry. Recent years have seen several well-publicized instances of cryptocurrency liquidations, which have left the participating companies and investors with large losses.
Did the SEC Approve the Ethereum ETF?
Following the SEC’s approval of applications on Thursday, ether exchange-traded funds are soon to float on major stock exchanges.
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