In a move that has shocked the entire industry, Bitcoin’s fall has led to more than $540 million being liquidated from the crypto market in just 4 hours. Indeed, the asset has dropped due to Spot Bitcoin ETF rejection concerns. Specifically, it has fallen as much as 9% over the last 24 hours alone.
Financial services firm, Matrixport, recently released a report anticipating Bitcoin ETF rejections across the board. Indeed, it expressed concern with the US Securities and Exchange Commission’s (SEC) willingness to approve the product. Ultimately, it projected initial denials at the upcoming January 10th deadline.
Also Read: Bitcoin Price Falls Amid Speculation of ETF Rejection
Crypto Market Sees $540 Million Liquidated Amid Bitcoin ETF Speculation
Through the closing months of 2023, Spot Bitcoin ETF decision dominated the digital asset sector. Experts across the board were discussing the potential impact of approval. Moreover, the likelihood of such an approval occurring in the first week of January became the prevailing thought.
However, that changed due to a recent report highlighting the potential for widespread rejections. Subsequently, that speculation has led to a massive drop in Bitcoin’s price, and more than $540 million liquidated from the crypto market in the last 4 hours alone.
Also Read: Bitcoin Breaks $45,000: Eyes on $50,000 Before ETF Decision
Bitcoin (BTC) celebrated the new year by surpassing the $45,000 mark for the first time since 2022. However, that quickly changed course, as the last 24 hours have seen the cryptocurrency drop as much as 9%. In turn, most of the January 1st gains were retracted, with massive liquidations across derivatives exchanges taking place.
Just last week, Reuters reported that a Bitcoin ETF approval could come as soon as “Tuesday or Wednesday,” according to their sources. However, Matrixport noted the failure of the applications to meet “critical requirements” that will precede the rejection of the investment product by the SEC.
