On Wednesday, the cryptocurrency market witnessed a surge in liquidations, reaching its highest level in a week, spurred by Bitcoin‘s dip below the $60,000 mark. According to CoinGlass data, over 74,000 traders encountered liquidations totaling $208 million. Long-position holders, who had anticipated upward movements, bore the brunt with approximately $184 million in losses. Ethereum investors were notably affected, with $55.5 million liquidated primarily from long positions.
The market’s recent volatility is attributed to multiple factors including U.S. monetary policy concerns, geopolitical tensions, and anticipation surrounding the upcoming U.S. presidential election in November. Analysts foresee these elements continuing to influence Bitcoin’s trajectory throughout 2024. Following its drop from approximately $62,200 to an intraday low of $59,425, Bitcoin has rebounded slightly to just above $60,200, but currently trades at $58,487, reflecting a 4.7% decrease over the past day.
Ethereum mirrored this trend, experiencing a 5.5% decline from $3,384 to a current low of $3,198, marking a 5% decrease over the past week, partially reversing gains anticipated ahead of a spot ETF launch. Meanwhile, Solana faced a substantial 11% decline to $134, following heightened interest sparked by VanEck’s filing for a Solana spot ETF in late June.
Looking broadly, major cryptocurrencies have seen downturns over the past month, with Ethereum down by over 15% despite increasing enthusiasm surrounding the potential introduction of Ethereum spot ETFs. Analysts suggest these financial products may start trading as early as mid-July, potentially bolstering ETH prices. Bitcoin, too, has endured a 14.8% decline over the same period, reflecting ongoing market volatility and external economic pressures.
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