Will BTC fall again?
The cryptocurrency market has certainly gone through a tumultuous period recently, with a massive sell-off leading to the liquidation of over $313 million in the past 24 hours. This violent market volatility mainly came from long bets, in which long positions worth more than $282.05 million were liquidated. Bitcoin (BTC) prices are also under heavy pressure and could fall to $54,000 or even lower. Especially after the U.S. stock market closed, Bitcoin encountered significant selling pressure, with the price falling by more than 6%. Notably, the drop comes as bankrupt cryptocurrency lender Celsius repays nearly $2.5 billion to its 251,000 creditors.
Cryptocurrency liquidations hit $313 million
Under this selling pressure, top cryptocurrencies such as ETH, SOL, and DOGE have all suffered heavy losses, comparable to the market crash on August 5, 2024.
According to data from on-chain analytics firm CoinGlass, more than 85,500 traders were forced to liquidate their positions in the past 24 hours. The total liquidation amount they counted reached $314.19 million. The largest liquidation occurred on ETHBTC on the Binance exchange, with an amount of $12.67 million. Data shows that most of the liquidations came from long bets, that is, investors who originally expected prices to rise. They were forced to liquidate positions worth more than $282.05 million. As a result, the market did not go as they expected.
Meanwhile, short sellers, those investors who expected the price to fall, only liquidated $31.7 million worth of short positions during the same time period. This could mean that short sellers haven't massively increased their profits despite the market's slump.
While 251,000 creditors were paid, 121,000 creditors may soon receive funds, which could create more selling pressure. This means that the market may fall further.