Having been as high as $118,000 mid last week, the bitcoin has slipped and was currently trading around $113,000 on Thursday following liquidations of long positions in the crypto perpetual futures market.
According to data from CoinGlass, over $1.5 billion worth of long crypto futures positions have been liquidated in the last 24 hours, the highest one-day level in recent months, with smaller-capitalization coins and tokens hit hardest, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
Ethereum and solana were down 9% to $4,050 and $215 respectively. Despite the DOGE ETF launch earlier in the week, dogecoin has dropped 12% to $0.2300.
This dip in prices could however present an opportunity for crypto traders and investors to buy as following the Fed’s 25 basis point cut to interest rates last week, markets are now starting to price in two more 25 basis point cuts this year, at the Fed’s end of October and mid-December meetings respectively. We’ve seen historically that cryptoasset prices tend to perform well when financial conditions loosen.
Seasonality could play a part too. October, November and December tend to be the strongest months for percentage gains in cryptoasset prices. We wait to see.
BIGGEST MOVERS
Despite seeing a fall this morning, $BNB is still up 12% over the week, with the cryptoasset price setting an all-time high and crossing $1000 for the first time.
After being overtaken by solana the week prior, $BNB has reclaimed fifth position in the total market capitalisation table, currently sitting at $142 billion.
With increased activity on the blockchain, reduced block time and faster transactions, the circulating supply of $BNB has reduced in recent months, from around 145 million to 139 million today. Less supply and rising demand tends to support upward price pressures. Discover more about market movers here.
EYE-CATCHING STORIES
US SEC approves generic listing standards for crypto spot ETFs
The US Securities and Exchange Commission last week voted to approve generic listing standards on the major US exchanges (NYSE, Nasdaq and Cboe BZX) for exchange-traded products that hold spot commodities, including digital assets.
Under the new rules, products that satisfy the approved listing standards won’t need an individual, full section 19(b) review by the SEC, resulting in a potentially quicker approval time of these spot commodity ETPs.
The current approval process can take 240 days or more. Under the new framework compliant products could be approved to list in as little as 75 days.
Posting on X, Bloomberg Senior ETF Analyst Eric Balchunas cited that 12-15 cryptos are eligible for “spot ETF-ization” and that there is a “good chance we see north of 100 crypto ETFs launched in the next 12 months”, as when the SEC passed the ETF Rule in 2019 for traditional ETFs, launches tripled.
SOL, LTC, DOGE and XRP have been touted as some of the cryptoassets which could see a ‘commodity-trust’ spot ETF launch soon.
In addition to the approval of the generic listing standards for commodity-based trust shares, the SEC also approved the listing and trading of the Grayscale Digital Large Cap Fund, which currently holds five spot cryptoassets bitcoin, ethereum, solana, XRP and ADA, potentially making it the first spot multi-crypto ETF on US exchanges.
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