3,750% Liquidation Imbalance Stuns XRP Bulls, Bitcoin ETFs Attract Nearly $250 Million Worth of Inflows, Dogecoin ETF Filing Sparks Surprise: Crypto News Digest by U.Today
2025-01-24
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U.Today presents the top three crypto news stories over the past day.
3,750% liquidation imbalance stuns XRP bulls
XRP perpetual futures have demonstrated unusual trading patterns due to a significant 3,750% difference between long and short positions. Data from CoinGlass reveals that over 97% of the $500,000 in XRP futures liquidated within one hour on Wednesday, Jan. 22, originated from long positions, with only $14,000 tied up with the shorts. The occurrence of this big difference coincided with a mere 1.5% decline in XRP's price. Earlier gains of 2.3% in the asset's value had boosted traders' confidence, leading them to take aggressive long positions. But a sudden change in value led to a bunch of liquidations. A similar trend has been observed across the broader crypto market, with total liquidations reaching $79.28 million, predominantly from long positions ($53.25 million). For XRP, the notable imbalance indicates a high level of overconfidence in the market and a reliance on momentum-based trading.
Bitcoin whales picking up steam as ETFs attract nearly $250 million worth of inflows
According to Santiment, Bitcoin is experiencing an increase in whale activity, which has historically contributed to bullish cycles on the market. The number of wallets holding between 100 and 1,000 BTC has reached a record high, with 15,777 wallets now reported. Santiment sees this uptick in whale activity as a potentially positive indicator for Bitcoin's future performance. On Jan. 20, Bitcoin achieved a record price of $108,786, yet it has since faced a 6% correction. Meanwhile, recent data indicates that various Bitcoin ETFs have attracted $248 million in net flows on Wednesday, Jan. 22, suggesting strong institutional demand despite BTC's underwhelming price action. Per QCP, the market is likely to remain "range-bound" until there is more clarity on the Fed's interest rate decisions, as Bitcoin struggles to regain bullish momentum amid the Fed's hawkish stance and decreasing chances of severe rate cuts in 2025.
Dogecoin ETF filing sparks surprise as DOGE slips back to $0.3500
Yesterday, it became known that Bitwise submitted a registration filing for a Dogecoin ETF, following filings for some crypto ETFs, including one for DOGE, by investment firms Rex Shares and Osprey Funds. However, despite the positive market expectations usually associated with ETF announcements, the news did not boost Dogecoin's price; instead, it dropped by 5%, to the surprise of many investors. The "Bitwise Dogecoin ETF" was registered with Delaware's Department of State as a preparatory step before an official proposal to the SEC can be made. If this product gains even a small portion of the inflows seen in Bitcoin ETFs, it could potentially drive up Dogecoin's value. Currently, Dogecoin ranks as the seventh largest crypto, with a market capitalization of $53.5 billion. At the moment of writing, DOGE is trading at $0.3622; its price has more than tripled over the past year, benefiting from Bitcoin's performance and recent developments related to the creation of the Department of Government Efficiency (D.O.G.E.) in the U.S.