Bitcoin's Sudden Plunge Incurs $165M Loss, Sparks Outflow in Crypto Market
Summary:
Bitcoin experienced a sudden 5% drop in value, causing investors with leveraged exposure in Bitcoin and other cryptocurrencies to accumulate over $165 million in losses in less than 2 hours. This instigated a $165 million erasure of leveraged positions and a net $86 million outflow from Bitcoin's exchange-traded funds. At the same time, U.S. dollar-tied stablecoin Tether also showed price instability.
Bitcoin investors experienced a quick 5% drop in asset value on Tuesday, leading to losses exceeding $165 million among those holding leveraged positions in Bitcoin and other cryptocurrencies. This precipitous fall occurred in under half an hour, with Bitcoin's value plummeting from its $69,450 apex to a low point of $65,970 in the earliest hours of March 2, UTC time, according to data from TradingView. Tracking website Coinglass showed a sharp $165 million erasure of leveraged positions, majorly composed of over $50 million gain from Bitcoin and $40 million gain from Ether (ETH). About $6 million from Dogecoin (DOGE) and approximately $4 million from Solana (SOL) came following the above. Coinciding with this plunge, a net $86 million outflow was posted by Bitcoin's exchange-traded funds (ETFs), interrupting a four-day streak. BlackRock’s ETF performed best, recording a $165.9 million net inflow, followed by Fidelity with $44 million. Nonetheless, these inflows were offset by Grayscale's GBTC posting outflows to the tune of $302 million, pushing the sum total of the daily outflows to $85.7 million. Alongside Bitcoin's precipitous drop, the U.S. dollar-tied stablecoin Tether's (USDT) value also exhibited instability of approximately 1%, briefly dropping from its set value of $1 to $0.988 - a fact confirmed by CoinGecko and Google Finance data. The cause of the USDT's instability, whether it was due to an error in data trackers' API or a sudden dip in currency value, remains unknown as some price trackers did not report the brief depeg. Tether was approached for a comment but has not replied at the time of writing.
Published At
4/2/2024 8:47:15 AM
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