Bets on crypto prices going up lost $217 million in the last day. This happened because a new type of bitcoin trade got approved, but instead of going up, the price went down. This shows that people are still betting against it.
People were worried that the company Grayscale was going to sell their bitcoin, and this made the price drop. Grayscale’s official wallets, which were confirmed to be theirs, had more than $400 million worth of Bitcoin moved to Coinbase Prime on Thursday. It is believed that this was done to get ready to sell the Bitcoin in the future.
Experts also said that GBTC shares dropped to a 0. 9% discount on Thursday because of “likely selling pressure. ”
However, as BlackRock’s investment fund reached $1 billion in assets on Wednesday, it’s likely that other ETFs are getting most of these sales.
Bitcoin went down to less than $42,000 on Thursday, a 3. 7% drop from the previous day and a 15% drop from its highest point in December at $49,000. This made the whole market go down, with ether (ETH) going down 2. 5%, Solana’s SOL going down 6. 5%, and Cardano’s ADA going down 5%.
BNB Chain’s BNB did better than the market and went up by 0. 6% This was because of launchpads on the Binance exchange, where people can stake BNB to get a share of new projects listed on the platform.
The price went down and people who borrowed a lot of money to bet on the price going up lost $217 million. Bitcoin trades alone lost $88 million.
Liquidation happens when a trading platform closes a trader’s position because they lost all their initial money. This happens when a trader doesn’t have enough money to keep a trade open.
At the same time, some traders said in a note on Friday that they think the overall crypto markets will stay in a certain price range for a short while.
Rachel Lin, CEO and co-founder of SynFutures in Singapore, said that BTC is staying around the $40,000–$42,000 range, which should help support its price in the short term. In general, last week was peaceful after a difficult time. The time of excessive excitement about ETFs is finished, and the market is not changing much, as it waits for something new to cause a change.