On July 4, Bitcoin‘s price briefly dropped to $57,874 on Coinbase, marking its first dip below $58,000 in over two months.
Since then, it has stabilized at $58,964 but remains down 3.4% for the week, according to TradingView.
This slump is attributed to the liquidation of leveraged long positions.
Data from CoinGlass reveals that more than $54.9 million in Bitcoin long positions were liquidated within the past 24 hours.
“Nearly $60 million in Bitcoin longs have been wiped in the last 24 hours,” states CoinGlass.
Ether traders also faced significant losses ahead of the anticipated launch of several spot Ether ETFs, expected by mid-July. In total, $57.9 million in Ether long positions were liquidated during the same period.
Much of the blame for Bitcoin’s broader price pullback is attributed to the defunct Japanese crypto exchange Mt. Gox, which is set to begin repayments of approximately $8.5 billion worth of BTC to its creditors starting in early July.
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However, some analysts believe these repayments may not have as severe an impact on Bitcoin as anticipated.
Other major cryptocurrencies and altcoins also experienced sharp declines during Bitcoin’s brief dip. Ether dropped 4.5%, briefly hitting $3,145 during a sharp sell-off at 2:00 am UTC on July 4.
BNB fell 6%, decreasing from $573 to $539 at the time of writing. Solana saw a 10.3% decline, falling from a weekly high of $154 to $136.
Meanwhile, mentions of “buy the dip” surged across social media platforms.
The use of this phrase has doubled on Reddit, X, and 4Chan over the last two days.
These recent movements in the crypto market highlight the volatility and significant impact of leveraged positions on price fluctuations.
The upcoming Mt. Gox repayments and the launch of Ether ETFs are key events that market participants are closely monitoring.
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