Bitcoin’s plunge revealed: investors were hit by a liquidation storm, GBTC outflows set a new record, and the market was in turmoil
Recently, the Bitcoin market has experienced a thrilling plunge, and investors have been seeking reasons for the fluctuations. With the price of BTC down nearly 15% from its all-time high, the market is shrouded in gloom. A large number of investors suffered heavy losses due to liquidation, while reduced inflows into spot Bitcoin ETFs and Grayscale’s regular transfer of BTC are believed by analysts to be behind the decline.
According to the latest data from Coinglass, the market liquidation amount reached $622 million in the past 24 hours. In this liquidation storm, long positions suffered heavy losses, with a liquidation amount of $515 million, while short positions were not spared, with a liquidation amount of $106 million. Behind this huge liquidation number are 240,354 investors who were ruthlessly involved in this market turmoil.
Among them, the liquidation case of a BTC/USDT trading pair worth US$12.2 million on the OKX exchange is particularly eye-catching. This huge liquidation not only highlights the intensity of market fluctuations, but also exposes the shortcomings of some investors in risk management.
So, what exactly caused the sharp decline in Bitcoin? Analysts have pointed to the decrease in spot Bitcoin ETF inflows and Grayscale’s regular transfer of BTC as two key factors.
According to data on March 18, the overall net outflow of spot Bitcoin ETFs was US$154 million. It is particularly worth mentioning that Grayscale’s ETF product GBTC experienced unprecedented net outflows, amounting to US$642 million. This figure broke the single-day net outflow record since its first trading day. Although BlackRock ETF IBIT achieved a net inflow of $451 million, it was obviously unable to withstand the downward pressure caused by GBTC on Bitcoin and the entire crypto market.
Amid this market turmoil, the market is generally feeling confused and uneasy. The plummeting price of Bitcoin not only caused their assets to shrink significantly, but also made them full of doubts about the future trend of the market. Many small partners have begun to reflect on their investment strategies, reassess market risks, and seek more stable investment methods.
Although the market is currently in a downturn, I still believe that Bitcoin has long-term investment value. With the continuous advancement of technology and the continuous expansion of application scenarios, the potential of Bitcoin will be further unleashed.Therefore, we need to stay calm and rational, look for opportunities in fluctuations, and develop more reasonable investment strategies. If you often chase the rise and fall, always get trapped, and have no direction, click on the avatar to follow Brother Bai, who will guide you!
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