Bitcoin price dips, $130 million in total liquidations with economist anticipating long weekend for BTC bulls

  • Bitcoin price has recorded double-digit losses since spot ETFs started trading on January 11, 8% drop on Friday.
  • BTC suffers partly in the wake of Grayscale GBTC dumping as holders leverage open redemption options.
  • Renowned economist anticipates tough weekend for BTC holders, as trading volumes drop 40%. Liquidations hit $13 million.  

Bitcoin (BTC) price is trading with a bearish bias, coming on the back of Grayscale (GBTC) dumping as investors seize the opportunity to redeem their Grayscale trust, selling BTC to the open market.

Also Read: Grayscale outflows near $600 million on trading day 3 as GBTC holders leverage spot BTC ETF approvals

Bitcoin price drop liquidates $130 million positions

Bitcoin (BTC) price dropped 8% on Friday and saw up to $130 million in total liquidations. This comprised $112.84 million longs and $17.57 million worth of short positions.

BTC liquidations

With this, up to $1.19 billion in open interest went down the drain as GBTC holders seized the opportunity to exit from the $25 billion held in the Grayscale trust, as the opening of redemptions finally provided a way out.

According to Bloomberg ETF analyst James Seyffart, the Grayscale GBTC had an outflow of $484 million, while other players in the ETF market like ARK Invest were recording inflows of up to $42.5 million, with the former moving Bitcoin to Coinbase addresses, a move pointing to users redeeming.

Renowned economist and strategist Peter Schiff anticipates a long weekend for BTC holders as the retail market takes a back seat. He anticipates more sell pressure especially “if the new Bitcoin ETFs gap way down on Monday.”

At the time of writing, Bitcoin price is $42,711, with multiple indicators flashing bearish as the weekend sets in. Nevertheless, the big picture bullishness is still not threatened, until such a time when Bitcoin price descends to the $30,000 psychological level.

BTC/USDT 1-day chart

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended Content

Editors’ Picks

Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews

Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews

Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week. 

More Cryptocurrencies News

Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60

Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60

Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days. 

More Ripple News

Solana could cross $200 if these three conditions are met

Solana could cross $200 if these three conditions are met

Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.

More Solana News

ALT, WLD, ENA, ID set for $200 million token unlocks next week

ALT, WLD, ENA, ID set for $200 million token unlocks next week

The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.

More Cryptocurrencies News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.

Read full analysis