Crypto liquidations on centralized exchanges totaled $138 million in the past 24 hours. Long positions accounted for $120 million in losses, while short-sellers lost $18 million as traders grappled with the recent volatility of Bitcoin.

Traders lost around $30 million from leveraged Bitcoin positions and $24 million from long positions.

Why Crypto Liquidation Rose Yesterday

The liquidations may have been due to the increased volatility in the Bitcoin price, which has fallen 2.2% in the last 24 hours. The volatility of the asset has increased since the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs). 

Read more: Four Mistakes To Avoid When Trading Bitcoin with Leverage

The former CEO of BitMEX, Arthur Hayes, said he had bought put options at a strike price of $35,000 to hedge against BTC downside. The decrease in unrealized profits since the SEC approved spot Bitcoin ETFs has lowered additional downside risk by reducing sell pressure.

“$BTC looks mad heavy. I think we break $40k. I went long some 29Mar $35k strike puts.”

Some of the recent volatility has been due to the movements of BTC out of institutional products or transferred to alternative products. Following the SEC’s approval of spot ETFs, exchange-traded products (ETPs) in other jurisdictions saw notable outflows. 

Bitcoin ETPs in Canada and Europe saw net outflows of around 5,000 BTC. There are about 20 spot Bitcoin ETPs in Canada. 

Most European ETPs are institutionally focused, suggesting t

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Author: David Thomas

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