"Bitcoin Volatility Continues with ETF Speculation and $500M Liquidation Impact"

Bitcoin's price fell by 5.5%, erasing its gains from the new year, amidst a broader market downturn and increased risk aversion. The drop coincides with the Nasdaq's worst day since October and a warning from Richmond Federal Reserve President Thomas Barkin that interest rate hikes are still possible. Investors are also concerned about the potential delay in the approval of a spot bitcoin ETF, which has led to short-term traders unwinding their positions. Despite the recent decline, bitcoin had finished 2023 with a significant gain of 157%.