Crypto Market Liquidations Spike as Bitcoin Price Falls Below $60,000
Crypto market liquidations surged to their highest level in a week on Wednesday as Bitcoin’s price dipped below $60,000, causing more than 74,000 traders to be liquidated to the tune of $208 million, according to CoinGlass data.
The majority of these liquidations, totaling $184 million, affected investors who had taken long positions betting on price increases. Ethereum investors were hit the hardest, with $55.5 million in liquidations, mostly in long positions.
The drop in prices was attributed to ongoing concerns about U.S. monetary policy, geopolitical tensions, and the upcoming U.S. presidential election in November, which are expected to continue impacting the cryptocurrency market throughout 2024.
Bitcoin fell from around $62,200 to as low as $59,425 in intraday trading, before rebounding to above $60,200, still down 3% over the past 24 hours. Ethereum also saw a 3% decline, dropping from a high of $3,425 to $3,254, and is currently trading at $3,300.
Solana, the fifth-largest cryptocurrency by market cap, experienced the biggest drop among the top 10 coins, falling approximately 8% to $140. This decline came after the excitement surrounding the filing of a “Solana Trust” exchange-traded fund by VanEck last month.
Despite the recent market downturn, analysts remain optimistic about the future of cryptocurrencies, with some predicting a major price surge in the coming months. Analysts at CryptoQuant even suggested that current mining metrics indicate a potential bottoming of prices at current levels.
While cryptocurrencies have seen a decline over the past month, there is still anticipation for the debut of Ethereum spot ETFs, which could potentially boost prices. Overall, the market remains volatile but analysts are hopeful for further price gains in the near future.
