As a seasoned analyst with over two decades of market experience under my belt, I can confidently say that the cryptocurrency market is as unpredictable as ever. Bitcoin’s inability to maintain a stable position above $60,000 is a testament to this fact. The recent liquidations, totaling over $197 million in the past 24 hours, are a stark reminder of the volatility that characterizes this space.
The value of Bitcoin has been stuck around $60,000, reflecting ongoing market uncertainty, and on Saturday, August 3, it saw a significant drop, falling temporarily below $60,000.
As a researcher examining today’s Bitcoin market, I found an intriguing event: a brief dip, lasting merely a few minutes, that was substantial given the previous trading price above $62,000. This fluctuation proved impactful, causing a notable stir among market participants, resulting in the liquidation of numerous long positions.
Currently, more than 197 million dollars’ worth of highly-leveraged trading positions have been forced to close over the last 24 hours. It’s worth noting that this amount surged to a staggering 288 million dollars during the height of the market’s selling frenzy.
Bitcoin And Market Liquidations
Frequent fluctuations below the $60,000 mark for Bitcoin underscore the volatile and speculative character of the digital currency market. Caution prevails among traders and investors as they keep a close eye on its price swings.
Due to the latest news about Genesis Global Capital, a bankrupt crypto lender that started repaying loans, releasing more cryptocurrencies like Bitcoin and Ethereum into the market, this careful stance may have become even more prominent.
Given Bitcoin and Ethereum’s significant influence on the cryptocurrency market, their cautious performance has unwittingly fostered a prolonged bearish outlook among other digital currencies. While Bitcoin and Ethereum saw the most liquidated trades, this effect has rippled into various other virtual assets as well.
As a researcher examining the latest data from Coinglass, I found that Ethereum reigned supreme in the market, with a staggering $57.22 million worth of leveraged positions being liquidated. Not far behind, Bitcoin followed suit with an impressive $46.19 million in liquidations, while Solana trailed slightly with $15.35 million in similar instances.
Approximately $197.72 million was the total amount liquidated, primarily due to long positions, which accounted for about $159.88 million. The majority of these liquidations took place on Binance, OKX, and Bybit, with around $85.88 million, $65.83 million, and $16.47 million in liquidations occurring on each platform respectively. Each platform showed an 80% rate of long liquidation.
Prevailing Bearishness
1. It’s common in the cryptocurrency market for substantial liquidations to occur unexpectedly. Given the current pessimistic short-term trends, many of these liquidations have frequently been associated with long-term investment positions. On June 24 alone, about $300 million worth of positions were liquidated within a day. Likewise, on June 7, over $360 million worth of positions were liquidated when the price of Bitcoin dropped from $71,000 to $68,000.
Based on current market fluctuations, it seems the industry may still be navigating through periods of liquidation. The value of Bitcoin has been finding it tough to stay above $60,000, a trend that might continue for some time. This difficulty is partly due to Spot Bitcoin ETFs, which have typically sparked Bitcoin price increases, ending the previous week on a downward trend. More specifically, these ETFs experienced $237.4 million in outflows during Friday’s trading session, marking the largest daily outflow since May.
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2024-08-04 21:40