Over $200 Million in Liquidations as Bitcoin and Ethereum Drop Hard

All eyes in the cryptocurrency community are on the U.S. Securities and Exchange Commission and its upcoming decision on the enforcement of VanEck’s Ethereum ETF.

As happened earlier this year when Bitcoin was in the spotlight, pre-decision volatility has already begun with notable price declines for major assets.

CryptoPotato reported There were welcome winds of change blowing through the industry on Monday as ETF experts at Bloomberg increased their previous prediction success rate for the Ethereum ETF from 25% to 75%. This meant they believed that such a product would see the light of day by the end of this week.

After numerous delays and changes, a decision on VanEck’s Ethereum ETF Form 19b-4 is expected today, and the U.S. securities regulator must reject or approve it.

Bloomberg’s Eric Banchunas said earlier that he expects the SEC to provide its response around 4pm today, which is about six hours from now.

Markets have already started to feel the strain, with increased volatility in the last hour or so. ETH, for example, had risen to a multi-month high of nearly $3,950 earlier, but corrected by about $200. It has now recovered ground and stands at around $3,800.

Bitcoin was not spared. The leading cryptocurrency challenged $70,000 today, but had little success. The subsequent rejection pushed it sharply down to $67,600 a few minutes ago.

This volatility has led to daily liquidations of more than $220 million in the cryptocurrency market. Nearly 80,000 over-leveraged traders have been destroyed in the same time frame, and volatility is expected to only increase when the SEC announces its decision later tonight.

Bitcoin/Price/Chart 05.23.2024. Source: TradingView

Fuente