Crypto Liquidations Top $500M After Sharp Price Correction
Top cryptocurrencies led by Bitcoin have witnessed significant dips in the past 24 hours. The price drops have caused liquidations worth $505 million. According to CoinGlass’s report, short traders have collectively lost $72 million, while long traders are down $433 million.
Furthermore, the report shows that trades on Bitcoin and Ethereum account for over 70% of the liquidations. As of this writing, BTC has fallen 2.4% to $61,473, while ETH trades at $2,449 after a 5.6% drop, per data from CoinGecko.
“The Correction is Temporary,” Samir Kerbage Claims
Following the sudden downturn, Hashdex’s Chief Investment Officer Samir Kerbage took to X to claim that the price drops were temporary and anticipated a massive rally in the coming months, fueled by China’s stimulus, positive US employment figures, and compensation to FTX creditors.
He added that the end of the US presidential elections would minimize uncertainty among investors, which is bullish for crypto.
Why Bitcoin is Down Today
Meanwhile, Bitcoin and other digital currencies started trending downward on Tuesday evening after the IDF (Israel Defense Forces) reported that Iran had launched more than 100 missiles into the Jewish state.
The latest attack on Israel marks a serious escalation to ongoing conflicts in the Middle East. Speaking to a Sky News reporter, Military analyst Alistair Bunkall said the attack was bigger than the one carried out in April.
Investors Withdraw Funds From Crypto ETFs
As cryptocurrencies declined in value, investors withdrew funds from crypto spot ETFs. Soso Value reported on X earlier today that Ethereum and Bitcoin spot ETFs lost $243 million to net outflows on Monday. Before yesterday, these investment products had seen net inflows for eight consecutive days.
According to Soso Value’s report, AK 21Shares’ Bitcoin ETF ARKB was the most affected, processing $84 million in outflows. IBIT ETF, which BlackRock issues, came in second with outflows worth $40.8 million. As for Ethereum spot ETFs, Fidelity’s FETH and Grayscale’s ETH saw the highest outflows: $26 million and $23 million, respectively.
Notably, crypto-related stocks have also been affected by the latest downturn. For instance, Marathon Digital’s stock, MARA, has shed 9% of its value in the past 24 hours. Similarly, shares of CleanSpark and Core Scientific have dropped 6% and 4%, respectively.
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