More than $500 million in leveraged positions were liquidated on Monday as Bitcoin briefly fell below $60,000.
Cryptocurrency bulls got some luck on Tuesday morning after a tough start to the week.
Bitcoin rose 2.5% to trade above $61,000 and Ethereum rose 3.5%, while Solana rose 8% and Polkadot increased 5%.
Amazingly, the top 100 digital assets by market cap are all up today, with meme coins BRETT, WIF, PEPE and BONK leading the way.
The surge came after traders liquidated more than $500 million in crypto on Monday. The largest single liquidation order on Tuesday, worth $2.03 million, occurred on Bybit for BTC-USDT, according to data from CoinGlass.
An ETH ETF Could Be Coming Soon
Asset management firm VanEck has filed a Form 8-A for a Spot Ethereum ETF with the SEC as part of the approval process. Bloomberg analyst Eric Balchunas noted that the firm “filed its Form 8-A for Spot Bitcoin just seven days before the launch.”
If history repeats itself, an Ethereum ETF could launch as early as next week.
Michael van de Poppe, CEO of MN Trading, noted that Bitcoin's dominance continues to peak at 58%. “The upcoming ETF will likely bring even more attention to Ethereum,” he said.
Mt Gox repayment
Meanwhile, creditors of Mt. Gox, the once-largest bitcoin exchange that lost 850,000 bitcoins in a massive 2014 breach, are expected to start receiving repayments in bitcoin and bitcoin cash in early July.
Samson Mow, CEO of bitcoin adoption company Jan3, believes the current Bitcoin decline is driven by fear, not a massive sell-off of holdings. “Even if GoxCoin does hit the market, the sale will likely be OTC, so the impact on price will be minimal,” Mow tweeted.
U.S. stock markets rebounded on Tuesday, with the S&P 500 up 0.4% and the Nasdaq jumping 1.1%.
Federal Reserve Governor Michelle Bowman said today that it is not yet the right time to cut interest rates.
“Eventually, incoming data indicating that inflation is moving toward our 2 percent objective would justify gradually lowering the federal funds rate to prevent an overly restrictive monetary policy,” he said. “However, we have not yet reached the stage where it is appropriate to lower the policy rate.”
