Yesterday, bitcoin's price ride looked like a high-intensity roller coaster, initially topping the $73,000 mark before encountering a tumultuous sell-off event. More than $361 million in leveraged trades were undone in this event, forcing the price of btc to drop sharply to below $68,300.
The drastic price fluctuation mainly affected long position holders (investors speculating on a continuous rise in prices) and a staggering $258 million was lost. bitcoin price subsequently experienced a notable V-shaped recovery, during which short sellers found themselves on the losing side, with just over $103 million in liquidated positions.
This data by Coinglass marks the event as the most significant purge of long positions since March 5. At that time, bitcoin experienced a drop to $60,800 following its rise to an all-time high of approximately $69,000.
bitcoin ETFs See Record $1 Billion Inflows
Perhaps spurred by the opportunity presented by falling prices, investors in spot bitcoin exchange-traded funds (ETFs) embarked on a buying spree, unprecedented in its intensity. For the first time, spot bitcoin ETFs witnessed a daily inflow exceeding $1 billion on Tuesday, March 12, driven primarily by an $849 million inflow into BlackRock's IBIT. As detailed data Posted by Farside Investors, total net inflows into all bitcoin ETFs amounted to $1.045 billion (or $1.045 billion).
The second largest bitcoin ETF to date, Fidelity, had a fairly quiet day with FBTC raising just $51.6 million, while Ark Invest ($93 million), Bitwise ($24.6 million), Valkyrie ($39.6 million ) and VanEck ($82.9 million) saw relatively strong capital inflows. Notably, Grayscale's GBTC saw a waning outflow of just $79 million.
bitcoin analyst Alessandro Ottaviani shared his ideas about X, underlining the magnitude of these inflows: “1 billion total net inflow! MILLIONS OF DOLLARS! (…) In the last twelve days of trading, The Nine's receipts have been $9.2 billion, with an average of $768 million per day. Imagine if we maintain this pace and it is confirmed that the GBCT output is almost sold out.”
crypto Quant analyst Maartunn provided additional context to the impact of the inflow, revealing: “JUST IN: The bitcoin Exchange Traded Fund (ETF) has seen the highest inflows in its history, with an additional 14,706.2 btc.” . This statement further emphasizes the substantial increase in demand for bitcoin, which could lead to a significant reduction in supply.
RIGHT IN: The bitcoin Exchange Traded Fund (ETF) has seen the largest inflows in its history, with an additional 14,706.2 btc. https://t.co/xg7wADbRzy pic.twitter.com/IUAyt1jzGE
— Maartún (@JA_Maartun) March 13, 2024
Joining the conversation, crypto analyst @venturefounder He suggested possible future price movements based on current trend, “Absolute bitcoin Madness (…) The 5-day moving average net inflow has fully recovered to peak. So…probably HIGHER. If this continues, between $80,000 and $90,000 by the end of the month is not unreasonable. No correction has lasted more than 24 hours during the week. Interestingly, the first major correction of the 2021 cycle occurred when the price doubled the previous ATH. So couldn't we see a major correction to $120,000?
At press time, btc has already surpassed the $73,500 mark and is trading at $73,392.
Featured image created with DALL·E, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
