Aug 5, 2024
According to NEWSBTC. Bitcoin remains firmly around the $60,000 mark, reflecting ongoing market uncertainty. On Saturday, August 3, Bitcoin experienced a sharp, albeit brief, decline below $60,000, after having traded above $62,000 earlier the same day. This volatility resulted in the liquidation of numerous long positions, significantly impacting market participants.
In the past 24 hours, over $197 million worth of leveraged positions were liquidated, with the peak reaching $288 million during the sell-off. This persistent instability highlights the speculative nature of the cryptocurrency market. Traders and investors are cautious, closely monitoring price movements, especially following reports of repayments from the bankrupt crypto lender Genesis Global Capital, which added more Bitcoin and Ethereum to the market.
The cautious sentiment is not limited to Bitcoin and Ethereum but extends across the broader cryptocurrency market. According to Coinglass, Ethereum led with $57.22 million in liquidations, followed by Bitcoin with $46.19 million, and Solana with $15.35 million. The total liquidation amount reached $197.72 million, with $159.88 million in long positions. Most liquidations occurred on Binance, OKX, and Bybit, with liquidation amounts of $85.88 million, $65.83 million, and $16.47 million, respectively, each showing an 80% long liquidation rate.
The market is no stranger to such large-scale liquidations, particularly during periods of short-term bearish sentiment. On June 24, almost $300 million worth of positions were liquidated within 24 hours, and similarly, over $360 million worth of positions were liquidated on June 7 when Bitcoin's price dropped from $71,000 to $68,000.
Current market dynamics suggest that Bitcoinâs struggle to maintain a position above $60,000 may continue. Spot Bitcoin ETFs, historically a catalyst for Bitcoin price surges, ended last week negatively, with $237.4 million in outflows, marking the largest daily outflow since May 1. This ongoing volatility, coupled with significant market liquidations, underscores the cautious stance of market participants and the potential for continued liquidations in the near term.
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