Bitcoin price falls by 4% following $156.4 million liquidation impact on crypto market
Bitcoin, the dominant cryptocurrency globally in terms of market capitalization, experienced a 4% decline within the last day, coinciding with $155.25 million in liquidations across the broader crypto market.
Following a sustained period above the $60,000 mark for four consecutive days, Bitcoin (BTC) slipped below this threshold on August 11, dropping further to under $59,000. The digital currency reached an intraday low of $58,269 after hitting a high of $61,562 earlier.
Data from CoinGecko reveals that the overall crypto market saw a 4.32% downturn over the past 24 hours, leading to a decrease in its total value to $2.05 trillion.
Despite a 52% surge in global crypto trading volume compared to the previous day, trading activity remained lower than the prior week. This recent dip has resulted in Bitcoin’s weekly loss against the U.S. dollar amounting to 9.7%.
Ethereum (ETH) also faced a decline, falling to $2,527 after peaking at $2,711 earlier in the day, with its current trading price at $2,553.
Among the top ten cryptocurrencies based on market capitalization, Toncoin (TON) experienced the most significant drop at 8.43%, followed by Solana (SOL) with an 8.12% decrease, and Dogecoin (DOGE) declining by approximately 6.75%. As the evening of August 11 progressed, market prices exhibited volatility with heightened selling pressure.
Today posed challenges for traders in the crypto derivatives markets as a substantial number of long positions were liquidated. Coinglass data indicates that total crypto liquidations over the past 24 hours amounted to $155.25 million, with around 80% or $124 million involving long trading positions, reflecting traders who had expected further price upticks.
In the recent timeframe, over 61,637 traders faced liquidation, with the largest single liquidation occurring on the OKX exchange, totaling $2.17 million. Bitcoin led the liquidations at $41.31 million, closely followed by Ethereum with $39.53 million in liquidations.
Binance topped the list with $7.04 million in liquidations, split between $2.42 million from long positions and $4.62 million from shorts, while OKX followed with $3.48 million in liquidations, divided into $1.30 million from longs and $2.18 million from shorts.
Consequently, total crypto open interest decreased by 3.12% and currently stands at approximately $27.5 billion, according to Coinglass data.
Despite the recent market fluctuations, analysts at Grayscale Research foresee potential price increases in the forthcoming months. They anticipate that token valuations could recover if the U.S. economy achieves a “soft landing” and avoids a recession, potentially leading Bitcoin to approach its all-time high later this year.
