Yesterday, the Bitcoin price journey resembled a high-intensity rollercoaster ride, initially surging past the $73,000 mark before a tumultuous liquidation event. This event caused over $361 million worth of leveraged trades to unwind, forcing the BTC price to retreat sharply below $68,300.
The drastic price swings mainly affected long position holders – investors who speculated on a continued price increase – wiping out as much as $258 million. Subsequently, Bitcoin’s price staged a remarkable V-shaped recovery, with short sellers finding themselves on the losing side, with just over $103 million in liquidated positions.
This facts from 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, after climbing to a then high of around $69,000.
Bitcoin ETFs Record Record Inflows of $1 Billion
Perhaps spurred by the opportunity presented by the price drop, investors in spot Bitcoin Exchange-Traded Funds (ETFs) went on a buying spree that was unprecedented in intensity. For the first time, spot Bitcoin ETFs witnessed daily inflows of over $1 billion on Tuesday, March 12, mainly driven by $849 million inflows into BlackRock’s IBIT. According to detailed facts released by Farside Investors, the total net inflows of all Bitcoin ETFs amounted to $1045 million (or $1.045 billion).
The second largest Bitcoin ETF to date, Fidelity, had a fairly quiet day, with FBTC only taking in $51.6 million, while Ark Invest ($93 million), Bitwise ($24.6 million), Valkyrie ($39.6 million ) and VanEck ($82.9 million) made relatively little profit. strong capital inflow. Notably, Grayscale’s GBTC saw declining outflows of just $79 million.
Bitcoin analyst Alessandro Ottaviani shared his insights about ONE BILLION DOLLARS! […] Over the past twelve trading days, The Nine’s inflows amounted to $9.2 billion, with an average of $768 million per day. Imagine if we maintain this pace and it is confirmed that the GBCT outflow is almost exhausted.”
Crypto Quant analyst Maartunn provided additional context for the impact of the inflows, revealing: “JUST IN: The Bitcoin Exchange-Traded Fund (ETF) has experienced its highest inflows ever, with an additional 14,706.2 BTC.” This statement further highlights the substantial increase in demand for Bitcoin, potentially creating a major supply crisis.
JUST IN: The Bitcoin Exchange-Traded Fund (ETF) has experienced its highest inflow ever, with an additional 14,706.2 BTC. https://t.co/xg7wADbRzy pic.twitter.com/IUAyt1jzGE
— Maartunn (@JA_Maartun) March 13, 2024
Adding to the conversation, crypto analyst @venturefounder suggested potential future price movements based on the current trend: “Absolute Bitcoin madness […] The five-day moving average net inflows have fully recovered and are peaking. So…probably HIGHER. If this continues, $80-90,000 by the end of the month isn’t far-fetched. No correction took longer than 24 hours on weekdays. Interestingly enough, the first major correction of the 2021 cycle came when the price moved 2x above the ATH. So can we not see a major correction to $120,000?”
At the time of writing, BTC had already crossed the $73,500 mark and was trading at $73,392.
Featured image created with DALL·E, chart from TradingView.com
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