Bitcoin and Ethereum Prices Drop, Resulting in Over $170 Million in Longs Liquidated
The value of Bitcoin dropped below $59,000 late on Tuesday, as reported by CoinGecko data, hitting levels not seen in a week. This decline of over 3% was mirrored by Ethereum, which fell below $2,500.
This sudden drop in prices led to liquidations of over $170 million in long positions within just one hour, according to CoinGlass. Investors who were betting on the rise of asset prices faced significant losses, with BTC and ETH investors experiencing liquidations of $65 million and $52 million in long positions, respectively.
Bitcoin had recently experienced a notable surge above $63,000 following comments made by U.S. Federal Reserve Chairman Jerome Powell hinting at a potential interest rate cut next month. However, the price of BTC stumbled prior to the latest decline.
The price of Solana (SOL) also saw a decrease of more than 6% for the day, settling at $147. Other tokens like XRP and Dogecoin (DOGE) also witnessed dips of over 5% within a 24-hour period.
Despite the swift change in prices, there doesn’t seem to be a specific catalyst for this shift, as U.S. stock markets closed Tuesday’s trading mostly flat.
Analysts have noted the current state of Bitcoin price movements as reaching a state of “equilibrium,” with a recent report from CoinGlass suggesting that this could lead to a period of increased volatility.
In a recent report, Fairlead Strategies cautioned about a potentially “seasonally weak period in September.” The firm, which relies on technical analysis for its forecasts, indicated the possibility of “another two months of corrective price action.”
