img-1

Bitcoin Reaches $49K High Before Dropping, as ETFs Record $2.3B in Trades by Mid-Day

img-2

Bitcoin's Brief Surge and Subsequent Decline

On January 11, 2024, at 11 a.m. Eastern Time (ET), spot bitcoin exchange-traded funds (ETFs) made an impressive debut with a trading volume of $2.3 billion. However, the excitement was short-lived as bitcoin's spot markets experienced a sudden decline later that afternoon. The price of bitcoin fell below the $46,000 mark, dropping from a high of $49,000.

Bitcoin's Peak and Price Drop

Earlier that day, around 9 a.m. (ET), bitcoin (BTC) reached its peak value of $49,048 on Bitstamp. Unfortunately, this surge was not sustained, and BTC's value plummeted below the $46K barrier, reaching a low of $45,700 per unit. By 11 a.m. (ET), Bloomberg's Senior ETF Analyst, Eric Balchunas, announced that the new spot bitcoin ETFs, along with Grayscale's GBTC, had collectively generated a trading volume of $2.3 billion.

"The 10 fresh spot bitcoin ETFs have seen $1.3b in trading volume so far (as a group they already topped BITO's record). If we add in GBTC we get to $2.3 [billion]," Balchunas said. "And if we add in BITO (which is having record day too but isn't part of 'spot' race) we get $3.5b for the complex," he added. Since then, BTC's spot market price has been extremely volatile.

Market Reaction and Increased Volatility

The commencement of trading likely triggered an initial surge in demand, followed by a wave of short-term profit-taking, which is a common pattern after significant market events. Bitcoin's 24-hour trading volume currently stands at an impressive $57.45 billion, contributing to the total $192.48 billion traded across the entire cryptocurrency ecosystem. However, this rapid surge and subsequent drop led to significant liquidations of BTC long positions, wiping out $53.58 million in just four hours.

In the past 24 hours, coinglass.com's liquidation metrics reported over $119 million in BTC longs being liquidated. The introduction of spot bitcoin ETFs injected short-term volatility into the market, resulting in larger price swings. These fluctuations indicate increased uncertainty and risk in the crypto market. It's not uncommon for such market reactions to major announcements on Wall Street, as markets adjust to new information and investors rebalance their portfolios.

Resurgence in Bitcoin Options and Futures

Interestingly, the total open interest in bitcoin options is on the rise, reaching its peak at the end of December 2023. Similarly, the total open interest in bitcoin futures is also experiencing a resurgence. Currently, CME Group leads the pack with $6.59 billion in bitcoin futures open interest, surpassing Binance's open interest of $4.53 billion as of Thursday afternoon at 1:30 p.m. (ET).

What are your thoughts on bitcoin's market action on Thursday when the spot bitcoin ETFs started trading? Share your opinions in the comments section below.

CFTC

How To

How to hold physical gold in an IRA

The best way of investing in gold is to purchase shares from companies that produce gold. But, this approach comes with risks. These companies may not survive the next few years. Even if the company survives, they still face the risk of losing their investment due to fluctuations in gold's price.

You can also buy gold directly. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's also easier to see how much gold you've got stored. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You also have a lower chance of theft than stocks.

There are also some drawbacks. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. Also, you won't be able to diversify your holdings – you're stuck with whatever you bought. The taxman might also ask you questions about where your gold is located.

BullionVault.com is the best website to learn about gold purchases in an IRA.

—————————————————————————————————————————————————————————————-

Based on [POSTTITLE]

by [POSTAUTHOR]

 

Recent Posts
Latest Featured Posts
Latest News Posts