Bitcoin Faces 4% Drop Amid Significant Liquidations
In a sudden turn of events, Bitcoin, the largest cryptocurrency by market value, has plunged by 4% in the last day. This decline comes as the crypto market grapples with $155.25 million in liquidations. After maintaining a position above $60,000 for four days, Bitcoin (BTC) slipped below this psychological barrier on August 11, eventually hitting a low of $58,269 after an earlier peak of $61,562.
Broader Crypto Market Decline
According to CoinGecko, the overall cryptocurrency market dropped by 4.32%, reducing its valuation to $2.05 trillion. Despite a 52% increase in global crypto trading volume from the previous day, activity remained less than last week's levels. This recent downward trend has contributed to a 9.7% weekly loss for Bitcoin against the U.S. dollar.
Ethereum and Other Cryptocurrencies Follow Suit
Ethereum (ETH) wasn't immune to the market's turbulence, falling to $2,527 after reaching a high of $2,711 earlier. At the time of writing, ETH trades at $2,553. Among the top ten cryptocurrencies by market capitalization, Toncoin (TON) took the hardest hit, losing 8.43%. Following closely were Solana (SOL) with an 8.12% decline and Dogecoin (DOGE), which decreased by about 6.75%.
Impact on Crypto Derivatives Markets
The day has been rough for traders in the crypto derivatives markets, with a large volume of long positions being liquidated. Data from Coinglass reveals that the total crypto liquidations reached $155.25 million in the past 24 hours. A significant portion, 80% or approximately $124 million, were from long positions, meaning traders had expected prices to rise.
Exchange-Specific Liquidations
Over 61,637 traders were liquidated in the last 24 hours. The largest single liquidation of $2.17 million happened on the OKX exchange. Bitcoin led with $41.31 million in liquidations, closely followed by Ethereum with $39.53 million. Binance topped the list with $7.04 million in liquidations – $2.42 million from longs and $4.62 million from shorts. OKX was next with $3.48 million in total liquidations.
Market Outlook and Future Predictions
As a result of these liquidations, total crypto open interest fell by 3.12%, now sitting around $27.5 billion, according to Coinglass. Despite these fluctuations, analysts at Grayscale Research remain optimistic about future price increases. They suggest that if the U.S. economy achieves a "soft landing" and avoids recession, Bitcoin could approach its all-time high later in the year. This offers a glimmer of hope for investors looking towards a market recovery.
