Crypto Liquidations Hit $160M as Bitcoin Price Falls Below $60,000

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As a seasoned crypto investor with a few years of experience under my belt, I’ve seen my fair share of market volatility. And let me tell you, the current Bitcoin price decline is giving me a déjà vu feeling. The coin’s intense price fluctuation in the last few weeks has left me on edge, especially when I see other digital currencies following suit with their own drawdowns.

Over the past few weeks, Bitcoin (BTC) has experienced significant price volatility. At present, its value hovers around $60,281.10, marking a 3.7% decrease from the previous day’s price.

Previously, Bitcoin had dipped just below the $60,000 mark. Consequently, this dip in Bitcoin’s price led to a domino effect, causing other digital currencies such as Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and various meme coins to experience significant losses as well.

$162.22M Liquidated in 24 Hours

In addition, the cryptocurrency market has experienced a wave of liquidations as investors try to protect their remaining crypto assets. According to information from CoinGlass, there have been numerous long positions with leverage that have performed poorly over the past 24 hours. As a result, over 56,670 traders were forced to sell off their positions, resulting in a total loss of $162.22 million.

In the past 24 hours, a combined $44.13 million worth of long positions were liquidated across prominent cryptocurrency exchanges such as Binance, OKX, and HTX (previously Huobi). Among these platforms, Binance recorded the highest liquidation amount at $15.63 million. Notably, the largest individual liquidation transpired on OKX with a value of approximately $4 million.

Within a day’s time, approximately $46.22 million in Bitcoin value was eliminated from the market. Likewise, around $42.01 million in Ethereum and $10.18 million in Solana were also erased. Additionally, approximately $22.27 million in other assets underwent liquidation.

In the past hour, Bitcoin’s long positions have seen a loss of approximately $1 million. Meanwhile, traders have disposed of around $529,710 worth of Ethereum, $624,350 in Solana, and over $219,260 in other cryptocurrencies through liquidation.

The difference between the agreed-upon price in contracts and the current market price is causing these liquidations. Generally, traders enter into long positions, anticipating a rise in the value of assets such as Bitcoin or Ethereum. Conversely, they use short positions to wager that the asset’s price will decrease.

As a crypto investor, when the difference between the desired price of my contract and the current market price becomes too vast, I must consider liquidating my position to minimize potential losses. This means selling my contract at the current market price to close out the position and reduce my overall exposure to the volatile cryptocurrency markets.

Bitcoin Price at the Mercy of Mt.Gox Rehabilitation Plan

As a crypto investor, I’ve noticed that the price of Bitcoin has taken a dip lately, and this comes after a significant outflow of funds from spot Bitcoin ETFs. Just a few days prior, these ETFs had seen five consecutive days of positive cash inflows, amounting to approximately $129.45 million. However, on Monday, the trend reversed, with no new inflows and no negative cash flows reported from any issuers.

Despite a significant outflow of $13.62 million on Tuesday, Bitcoin ETFs experienced negative inflows once again. The crypto market remains cautious as Mt. Gox prepares to distribute Bitcoin and Bitcoin Cash (BCH) to affected investors under the Rehabilitation Plan, starting in July.

Approximately $9 billion is expected to enter the market, potentially leading to greater price fluctuations in the upcoming weeks.

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2024-07-03 18:17