As a seasoned crypto investor with a few battle scars on my portfolio, I’ve seen my fair share of market volatility. Today’s sharp selloff in Bitcoin and altcoins came as no surprise to me. The news of Mt. Gox creditors receiving repayments in July, along with the German government wallet selling off a significant amount of BTC, added fuel to the bearish fire.
On Monday, the Bitcoin price dipped beneath the $61,000 mark due to increasing bearish sentiment. This downturn triggered over $320 million in total liquidations across the market within a 24-hour period.
As bitcoin’s price declined and bulls failed to defend previous support levels, potential buyers now face the possibility of the cryptocurrency dipping down to the significant psychological threshold of $60,000.
As a crypto investor, I’ve noticed that the sell-off has extended to the altcoin market as well. Ethereum, which was struggling to stay above $3,300, succumbed to the pressure and dipped. Similarly, Solana, Binance Coin (BNB), and XRP experienced substantial losses, erasing recent gains. Among the top 50 coins by market capitalization, Uniswap and Maker suffered the most significant declines, with losses of 12% and 9%, respectively, in the last 24 hours.
Liquidations hit over $320 million in past 24 hours
When Bitcoin dipped below the $62,000 mark on Monday, the cumulative liquidations in the crypto market surpassed $300 million from my perspective as an investor.
When Bitcoin dips below the $61,000 mark and seems poised for further declines, the elimination of over-leveraged long positions reached an astounding $324 million. Approximately $286 million represent long positions, while $36 million correspond to short positions.
According to data from Coinglass, nearly $132 million of the liquidations are for Bitcoin.
As a researcher examining trading activity in the market, I’ve discovered that long positions accounted for approximately $122 million in trades during the past 24 hours. Conversely, short positions that were liquidated amounted to around $9.9 million. Notably, over $95 million of those long positions were liquidated within the last twelve hours.
Approximately 85,440 traders have had their positions closed with over $15.36 million in losses during the last 24 hours, with the largest single liquidation taking place on Binance involving the BTC/USDT pair at around 12:30 pm ET on June 24.
Why did Bitcoin price fall sharply today?
The trustee of bankrupt crypto exchange Mt. Gox made an announcement on June 24th that creditor repayments, which have been eagerly anticipated, will commence in July. With approximately $9 billion worth of Bitcoin tied to the defunct platform, the news sparked immediate and sharp reactions from investors.
As a researcher studying the cryptocurrency market, I’ve observed that the Bitcoin price experienced a significant drop of over 5% following recent news announcements. This decline broke through previously established support levels, sparking apprehensions of a potential sell-off among investors. Additionally, there have been recent selling activities traced back to a wallet linked to the German government, adding to the downward pressure on the market.
Earlier this year, German police seized close to 50,000 BTC worth around $2.1 billion at the time.
The substantial increase in Bitcoin’s value during the previous months resulted in a total worth exceeding 3 billion dollars. However, recent information from Arkham Intelligence indicates that a considerable amount of this cryptocurrency was recently offloaded from one wallet, possibly instigating further sell-offs.
As a crypto investor, I’ve noticed that miners have offloaded a significant amount of Bitcoin since the last halving. According to data from IntoTheBlock, approximately 30,000 BTC have been sold in the aftermath.
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2024-06-24 20:28