Bitcoin (BTC) revisited $45,000 around the Jan. 8 Wall Street open as exchange-traded fund (ETF) buzz injected fresh volatility.
Bitcoin ETFs draw new liquidation warnings
Data from Cointelegraph Markets Pro and TradingView tracked close to 3% daily BTC price gains.
The largest cryptocurrency saw renewed buying as traders upped open interest in what one appraisal called “speculation.”
“ETF Speculators aren’t going to be happy if an approval doesn’t come today, but the word on the street is Wednesday is most likely the day,” trading resource Material Indicators continued on X (formerly Twitter).
“That means you should be prepared for another potential flush. Whales want to shake out weak hands and buy lower.”
Material Indicators referenced last week’s liquidations, which removed large portions of open interest as leveraged long BTC positions unwound.
At the time of writing, Bitcoin futures open interest stood at 407,400 BTC, up more than 8,000 BTC on the day, per data from statistics resource CoinGlass.
Responding, financial commentator Tedtalksmacro queried whether the size of the increase preempted an early ETF decision.
CoinGlass itself, meanwhile, pointed to ask liquidity increasing immediately above the spot price, presenting what could happen should the market move rapidly to the upside.
https://t.co/BRDrZnsAYS pic.twitter.com/JLkacnhQek
— CoinGlass (@coinglass_com) January 8, 2024
BTC price ignores sagging gold
Meanwhile, well-known Bitcoin community names maintained a cautious tone despite the increasing confidence that the ETFs would launch.
Related: 100 days to the halving — 5 things to know in Bitcoin this week
Hodlonaut, an adviser to Bitcoin custody service The Bitcoin Advisor, saw further unreliable price moves to come around the decision.
“I will be surprised if there are no more price shenanigans related to the ETF’s,” he told X subscribers.
“Any previous time where people have been this much in agreement on imminent bullish price action, there have been expectation rug pulls. Don’t trade. Low time preference.”
James Van Straten, research and data analyst at crypto insights firm CryptoSlate, meanwhile, spied a 1% price decline for gold as a potentially timely event, considering whether market participants might be “rotating” into Bitcoin.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.