Bitcoin Price Drops to $55,000 with Over $600 Million in Liquidations
Bitcoin, the largest cryptocurrency by market capitalization, has recently experienced a significant drop in price, hitting its lowest point since February. This decline has led to a surge in liquidations of long positions, totaling over $500 million in the past 24 hours, as reported by CoinGlass data.
The crypto market witnessed the largest single-day liquidation event since mid-April, with more than $80 million in short positions also being liquidated. Bitcoin’s price dipped to as low as $55,000 before rebounding slightly to around $55,550, based on CoinGecko data.
The struggle for Bitcoin to reclaim levels above $60,000 is attributed to investor confidence issues and concerns surrounding a $2.7 billion transfer from the Mt. Gox bankruptcy estate’s cold storage to an undisclosed wallet. Additionally, Ethereum, the second-largest cryptocurrency, dropped over 4% below $3,000 for the first time since mid-May.
Uncertainty surrounding the U.S. Federal Reserve’s ability to manage inflation this year has impacted risk assets, including cryptocurrencies. Experts anticipate further downward pressure on Bitcoin’s price, with projections pointing towards a potential slide to $52,000.
The current market conditions reflect a challenging period for cryptocurrencies, with ongoing volatility and external factors influencing price movements. As the crypto space navigates these challenges, investors and traders are closely monitoring developments to make informed decisions in this dynamic market environment.
