BTC Price Index and Live Chart – CoinDesk”>(BTC) exchange-traded funds (ETFs) in the U.S. did not turn out to be an outright sell-the-news event as some expected but still impacted $80 million in both long and short bitcoin futures bets as prices rose rapidly and retreated.

Bitcoin prices briefly rose to $49,000 shortly after the ETFs began trading, igniting a bullish sentiment. Bets were placed on the sudden surge. This pushed the prices of majors such as Solana’s SOL and ether (ETH), up by as much as 10 percent within hours.

The initial excitement over bitcoin has faded, and the market analysts have stated that the millions of dollars in volume driven by Grayscale’s bitcoin ETF was likely by sellers.

Prices have not risen above $47,000 since Thursday night.

Grayscale bitcoin ETF was created as an upgrade to Grayscale’s defunct bitcoin trust. Each share held a specific amount of bitcoin spot and traded at a discount based on the holdings per share for 2023.

Due to the price volatility, both short and long bitcoin futures traders were liquidated. A total of $83,000,000 worth of bitcoin was affected in both directions, which is nearly $40 million. The most significant impact came from Binance.

Bitcoin and Majors Futures Liquidations (Coinglass)

Over $230 million was lost by traders due to a decline in bitcoin. The overall market remained flat for the past 24 hour.

When an exchange closes a trader’s leveraged position because the trader has lost a portion or all of their initial margin, it is called liquidation. When a trader fails to meet margin requirements (fails have enough funds to keep the position open), it is called liquidation.

Parikshit Miishra is the editor.