Bitcoin Traders Lose Over $190 Million Within 48 Hours

While the crypto world anticipates a Bitcoin Spot ETF approval, Bitcoin traders have lost over $190 million within 48 hours as the price of Bitcoin changes rapidly due to different factors.

On the 9th of December, A fake tweet from the SEC's X account led to $90 million in Bitcoin trading losses, highlighting market manipulation risks. The hackers used the SEC's account to falsely signal a Bitcoin ETF approval, causing Bitcoin prices to wildly fluctuate thus leading to massive losses by both traders who took a long and short bet against Bitcoin.

After the tweet was confirmed to be false, Bitcoin's price went up and dumped. Traders and bots were fast to respond by opening over $500 million in futures positions, but many lost their money as prices changed rapidly.

Before this, Bitcoin broke the $47,000 level in the early hours of January 9th. This price movement impacted a lot of traders who were holding a short position (betting against the price of Bitcoin) causing them to lose over 100 million dollars. The cumulation of these losses made by Bitcoin traders within 48 hours is a whopping  $190 million, emphasizing the highly volatile condition of the crypto market. 

Liquidation happens as a result of an exchange forcefully closing traders' leveraged position due to partial or total loss, leading to the traders' inability to maintain their leveraged position, often signaling a major price shift. This data helps traders understand market trends and potential future price movements.

A decision on thirteen Bitcoin ETFs is expected today 10th of January, with high approval expectations among analysts and market bettors.