Impact of Bitcoin ETF Hoax: Rp3.3 Trillion Liquidated in Futures
The crypto market experienced high volatility on Wednesday morning (10/1/24) due to the news of an approved Bitcoin spot ETF by the SEC. SEC Chairman Gary Gensler later denied this and claimed that the SEC account was hacked.
As a result of this event, price movements in the crypto market saw volatility on both sides, causing many futures positions to be liquidated.
Rp3.3 Trillion in Futures Positions Liquidated Due to Bitcoin ETF News
On Wednesday morning (10/1/24), the SEC's X account announced that all Bitcoin spot ETFs were approved, as expected by the majority of the crypto community. However, this joy was short-lived as SEC Chairman Gary Gensler stated that the news was false, and the SEC's X account had been hacked.
As a consequence of this event, price movements in the crypto market experienced volatility, especially in the price of Bitcoin, which was the subject of the ETF itself. After the news of the approved ETF, the BTC price rose by +2.8% from US$46,675 to US$47,975.
Just 15 minutes later, Gensler declared the news false, and the BTC price experienced a -6.2% decline from US$47,975 to US$45,000.
This price movement caused volatility on both sides, resulting in significant losses for traders who had leveraged futures positions. According to Coinglass data, there were approximately US$214.73 million or around Rp3.3 trillion in futures positions liquidated in the last 24 hours.
Liquidations were dominated by LONG positions with US$131.99 million or 61.47% of the total liquidations. Meanwhile, SHORT positions were liquidated at US$82.74 million or 38.53% of the total liquidations.
Although LONG positions dominated, it didn't appear overwhelmingly (below 90%), indicating that traders were liquidated on both sides due to the impact of the false SEC news.
This volatile price movement also drew attention from some individuals in the crypto community. Jeff Zirlin, the founder of the popular game Axie Infinity (@Jihoz_Axie), mentioned, "[...] Be cautious, this is why you don't use leverage," in response to the false news from the SEC.
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