Bitcoin Spot ETF: SEC Mishap Triggers $220 Million In Crypto Liquidations

Scott Matherson

1 year ago

3 mins read

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On Tuesday, the crypto market was taken by storm when a tweet emerged from the official X (formerly Twitter) account of the United States Securities and Exchange Commission (SEC) saying all Spot Bitcoin ETF applications had been approved. This had been initially followed by a surge in price but this was short-lived as the price would crash shortly after. The reason for this was because Gary Gensler, chairman of the Commission, revealed that the tweet was fake and the regulator’s social media account had been compromised.

SEC Hack Triggers $220 Million In Liquidations

In the wake of the wild Bitcoin price fluctuations that were triggered by the SEC’s hack, a large number of crypto traders found themselves with massive losses on their hands. According to data from CoinGlass, over $220 million have been liquidated in the last 24 hours, leading to the second-largest liquidation event so far in 2024.

The website also notes that over 70,000 traders were victims of this liquidation event as well. Also, given that the price of Bitcoin and other assets in the crypto market had seen price fluctuations in both directions, both long and short traders were affected.

Source: Coinglass

However, given that the crash to the downside has persisted for longer, long traders have come out as the group with the most liquidations during this time. Out of the more than $220 million in liquidations recorded, long trades made up 60.47% with $133.5 million, while the volume of short liquidations came out to $87.29 million for the same time period.

Bitcoin saw the largest single liquidation order during this time as well which took place on the ByBit exchange. A single trade worth $6 million was liquidated across the BTCUSD trading pair, with total liquidations on the crypto exchange coming out to $36.66 million. This falls behind market leader Binance with $83.88 million and OKX with $73.97 million.

BTC bears struggle for control | Source: BTCUSD on Tradingview.com

Spot Bitcoin ETF Is A Sell The News Event?

The debate of whether the Spot Bitcoin ETF approval has already been priced in and if an announcement will lead to a decline in price has been waxing stronger over the last few weeks. Experts have chimed in to give their thoughts on what will follow an approval.

Crypto analyst Andrew Kang believes that approval would lead to a scramble among applicants to grab as much as possible from the $10 billion to $20 billion expected to come from fees. As such, they will all be at the forefront of marketing to push their ETFs.

On the flip side, renowned economist, Peter Schiff, believes that a spot ETF would actually not be good for the asset. Apparently, the advent of a spot Bitcoin ETF would mean that there is no longer any good news to trigger a price rally. As such, it would turn into a ‘sell the news’ event.

However, if the performance from Tuesday is anything to go by, it could mean that the ETF is already priced in given that there was a decline in price, even before the SEC dismissed the tweet from the hacked account.

Featured image from SoFi, chart from Tradingview.com

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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