PakGazette – PakGazette features the top three cryptocurrency news stories from the past day.
3,750% Liquidation Imbalance Stuns Bulls
XRP perpetual futures have demonstrated unusual trading patterns due to a significant 3,750% difference between long and short positions. CoinGlass data reveals that more than 97% of the $500,000 in XRP futures settled in one hour on Wednesday, January 22, originated in long positions, with only $14,000 invested in the short positions. The appearance of this large difference coincided with a drop of just 1.5% in the price of XRP. Previous 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 sparked a series 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.
Whales gain momentum as ETFs attract nearly $250 million in inflows
According to Santiment, Bitcoin is experiencing an increase in whale activity, which has historically contributed to bullish cycles in the market. The number of wallets containing between 100 and 1,000 BTC has reached an all-time high, with 15,777 wallets now reported. Santiment sees this increase in whale activity as a potentially positive indicator for Bitcoin’s future performance. On January 20, Bitcoin hit a record price of $108,786, but has since faced a 6% correction. Meanwhile, recent data indicates that several Bitcoin ETFs have attracted $248 million in net flows as of Wednesday, January 22, suggesting strong institutional demand despite disappointing BTC price action. According to 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.
ETF filing raises surprise as DOGE falls back to $0.3500
Yesterday, it emerged that Bitwise filed a registration application for a Dogecoin ETF, following filings of some crypto ETFs, including one for DOGE, by investment firms Rex Shares and Osprey Funds. However, despite the positive market expectations generally associated with ETF announcements, the news did not boost the price of Dogecoin; instead, it fell 5%, to the surprise of many investors. The “Bitwise Dogecoin ETF” was registered with the Delaware Department of State as a preparatory step before an official proposal can be made to the SEC. If this product gains even a small portion of the inflows seen into Bitcoin ETFs, it could boost the value of Dogecoin. Currently, Dogecoin ranks as the seventh largest cryptocurrency, with a market capitalization of $53.5 billion. At the time of writing, DOGE is trading at $0.3622; Its price has more than tripled over the past year, benefiting from the performance of Bitcoin and recent developments related to the creation of the Department of Government Efficiency (DOGE) in the US.
