Bitcoin (BTC-USD) showed significant volatility Tuesday, with its price experiencing a notable sell-off followed by a quick recovery. To shed light on the factors driving this turbulence, Scott Melker, the host of The Wolf Of All Streets podcast, joins Yahoo Finance Live.
Melker advises investors following Bitcoin to “zoom out and just calm down,” suggesting that the recent sell-off was merely “a flush” of the leverage that had accumulated in the market. He notes that approximately $1 billion worth of Bitcoin positions were liquidated on Tuesday, a normal occurrence in the cryptocurrency markets.
According to Melker, the underlying catalyst for the heightened volatility is the recent approval of Bitcoin Spot ETFs (Exchange-Traded Funds). These ETFs have attracted “massive daily inflows,” with Melker expecting these inflows to continue, contributing to the market’s turbulence.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor’s note: This article was written by Angel Smith