Bitcoin’s price finally breaks past $113,000 but ETFs continue to bleed

Bitcoin has seemed stalled around $112,000, but is finally breaking past the $113,000 mark on Wednesday as whales have led a rush to sell. The token’s price is still down nearly 2% over the past week.

David Siemer, CEO of Wave Digital Assets, told Sherwood News that the wave of liquidations is due to a combination of factors hitting at once, including the fact that crypto markets have become heavily leveraged after bitcoin’s run past $120,000.

“Once bitcoin slipped through key price levels, stop-losses and liquidations snowballed against relatively thin liquidity, which amplified the move,” he said, adding that at the same time, stronger-than-expected US inflation data lifted the dollar and dampened risk appetite, giving traders another reason to unwind positions.

“Short-term holders were quick to sell into the weakness, further accelerating the downside,” he said.

Meanwhile, bitcoin ETFs continue to bleed, with outflows reaching $466.7 million since Monday, SoSoValue data shows. Reflecting the risk-off sentiment, gold ETFs, in contrast, experienced their largest inflow since January 2021 on Friday as gold itself hits all-time highs.