Bitcoin and Ethereum Prices Drop, More Than $170 Million in Long Positions Liquidated
The value of Bitcoin experienced a sharp decline below $59,000 late on Tuesday, as per data from CoinGecko, hitting levels not observed in a week. This more than 3% drop was mirrored by Ethereum, which slipped below $2,500.
This sudden price dip led to over $170 million in liquidations of long positions in just one hour, according to CoinGlass, impacting investors who were banking on asset prices to increase. The majority of these liquidations affected BTC and ETH investors, with $65 million and $52 million in long positions liquidated, respectively.
Bitcoin had recently surged above $63,000 following comments from U.S. Federal Reserve Chairman Jerome Powell hinting at a forthcoming interest rate cut. However, the price of BTC stumbled before the latest downturn.
Solana (SOL) also saw a decrease of over 6% for the day, trading at $147. Other tokens like XRP and Dogecoin (DOGE) also experienced declines of more than 5% within a 24-hour period.
Despite the U.S. stock markets closing Tuesday’s trading mostly unchanged, there was no specific catalyst for this rapid shift.
Some analysts have characterized the recent Bitcoin price movements as achieving a state of “equilibrium,” with a report from crypto analytics platform CoinGlass suggesting that this could precede a phase of increased volatility.
In their latest report, Fairlead Strategies cautioned about a “seasonally weak period in September,” using technical analysis to forecast potentially “another two months of corrective price action.”
