By Key Points
- Bitcoin plummets below $58,000, down over 4% in 24 hours.
- Massive sell-off liquidates long positions worth $257 million.
- Total liquidations amount to $294 million in the derivatives market.
- Liquidation charts led by Bitcoin and Ethereum.
Bitcoin’s latest downward spiral sent shockwaves throughout the cryptocurrency market as it crashed below $58,000, leaving a trail of liquidations behind it. Investors looking for a bullish turnaround in July were disappointed as the top coin lost more than 4% in just one day.
Bitcoin Bulls Yield: $257 Million Crypto Longs Rekt As BTC Crashes Under $58,000 https://t.co/h76BtSY43I pic.twitter.com/PlIWL3Wjoq
— JaguarDigital (@JaguarDigi16) July 5, 2024
The Sudden Fall of Bitcoin
Bitcoin had an optimistic start to July but quickly dropped back down to erase all its gains. The cryptocurrency went briefly below $57,000 before recovering towards $57,700. This sudden fall did not only affect BTC itself but also caused significant drops across the entire crypto market with altcoins posting even bigger losses.
Below is a chart showing how Bitcoin has performed over the past month highlighting its recent downward trajectory:
Huge Liquidations on Derivatives Market
As Bitcoin’s price fell rapidly, there was a cascade of liquidations across the crypto derivatives market. CoinGlass data showed that within 24 hours more than $294M positions got liquidated – with long ones accounting for most of them. To be precise – long contract holders contributed astonishing $257M to total liquidations which represents over 87% of this number altogether.
Fevered Speculation
Interestingly enough – last four hours saw these figures rise by further staggering $53M despite bitcoin stabilizing somewhat suggesting aggressive attempts by traders to catch the bottom only resulting into even more losses. Here is a table breaking down these numbers:
Symbol Liquidations (Last 24 Hours)
- BTC $140 million
- ETH $120 million
- SOL $61 million
Bitcoin and Ethereum topped liquidation charts being only $20M apart of each other but then there was a drop off to the third largest contributor – Solana which had dropped by some $59M indicating recent fevered speculation around the two biggest coins by market cap.
Market Implications
This recent crash and liquidations thereafter demonstrate just how volatile and risky trading in cryptocurrencies can be.
With this knowledge at hand traders/investors are keeping an eye on Bitcoin & Ethereum closely watching their moves for signs of stabilizing or further declining as they navigate through these turbulent times.
