Bitcoin has seemed stalled around $112,000, but is finally breaking past the $113,000 mark on Wednesday as whales have led a rush to sell. The token’s price is still down nearly 2% over the past week.
David Siemer, CEO of Wave Digital Assets, told Sherwood News that the wave of liquidations is due to a combination of factors hitting at once, including the fact that crypto markets have become heavily leveraged after bitcoin’s run past $120,000.
“Once bitcoin slipped through key price levels, stop-losses and liquidations snowballed against relatively thin liquidity, which amplified the move,” he said, adding that at the same time, stronger-than-expected US inflation data lifted the dollar and dampened risk appetite, giving traders another reason to unwind positions.
“Short-term holders were quick to sell into the weakness, further accelerating the downside,” he said.
Meanwhile, bitcoin ETFs continue to bleed, with outflows reaching $466.7 million since Monday, SoSoValue data shows. Reflecting the risk-off sentiment, gold ETFs, in contrast, experienced their largest inflow since January 2021 on Friday as gold itself hits all-time highs.
Adam Back and the Winklevoss brothers have backed the company, which plans to go public via a reverse IPO.
Even though more parties are entering the dogecoin ETF arena, the token is falling along with the broader crypto market.
Meanwhile, Metaplanet made its largest acquisition to date of 5,419 bitcoin.
Solmate backers include the Solana Foundation, Ark Invest, and Pulsar Group.
Rex Osprey launched the first spot XRP and doge ETFs today, while Grayscale will soon launch its just-approved multi-asset fund.