Bitcoin, the leading cryptocurrency, has experienced a sharp decline, falling below the $60,000 mark. This price drop has triggered significant liquidations in the futures market, particularly in LONG positions.
Bitcoin’s Price Falls, Liquidations Reach $200 Million
Bitcoin’s price dipped below $60,000, briefly hitting a low of $58,900 at 01:00 AM (October 11, 2024). Earlier, Bitcoin had shown signs of recovery, aiming for $64,000 after maintaining a level above $60,000 for the last three weeks.
The price drop didn’t just affect Bitcoin; it created a domino effect across the entire crypto market. Traders holding futures positions in various cryptocurrencies saw liquidations worth approximately $200 million in the past 24 hours, according to data from CoinGlass.
Of that total, 74.3% of the liquidated futures positions were LONG positions ($145 million), while the remaining 25.7% were SHORT positions ($50 million). This disparity shows that the majority of traders had been betting on the crypto market’s recovery, expecting the $60,000 level to support Bitcoin’s price, but the market instead dropped further.
BTC futures accounted for the largest share of liquidations at $67 million, followed by ETH with $40 million in liquidations, and SOL with $8.4 million.
Possible Reasons for the Crypto Market Decline
Geopolitical tensions in the Middle East, particularly between Iran, Lebanon, and Israel, are seen as one of the key factors driving investors away from high-risk assets like Bitcoin towards traditional safe-haven assets such as gold. Analysts note that although Bitcoin and other cryptocurrencies have gained wider acceptance, they are still viewed as risk-on assets by investors.
Additionally, the U.S. Securities and Exchange Commission (SEC) has ramped up its crackdown on crypto firms, recently suing the trading firm Cumberland. This combination of geopolitical tensions, poor economic conditions, and regulatory pressure has negatively impacted Bitcoin and other cryptocurrencies.
Since the beginning of October 2024, Bitcoin’s price has fallen by 5.6%, while other major cryptocurrencies like Ethereum and Solana have also declined by 3.8% and 10.3%, respectively, over the same period.
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