Crypto Market Turmoil: Over $200 Million in Liquidations Amid Bitcoin and Ethereum Declines
Crypto market liquidations surged to their peak in a week on Wednesday as Bitcoin’s price dipped below $60,000, resulting in over 74,000 traders being liquidated for a total of $208 million, according to CoinGlass data. The majority of these liquidations, around $184 million, affected investors with long positions anticipating price increases.
Ethereum investors faced the largest liquidations, totaling $55.5 million, primarily in long positions. Bitcoin witnessed a drop from approximately $62,200 to as low as $59,425 during intraday trading, rebounding slightly to above $60,200 but still registering a 3% decline over the past 24 hours. Ethereum also saw a 3% decrease, falling from a high of $3,425 to $3,254 before stabilizing at $3,300.
Solana, the fifth-largest cryptocurrency by market cap, experienced a significant drop of about 8% to $140, attributed to the launch of the “Solana Trust” exchange-traded fund by VanEck.
Despite the recent slump in top cryptocurrencies, Ethereum and Bitcoin are down by over 12% in the past month. The debut of Ethereum spot ETFs has generated interest, with predictions indicating potential trading by mid-July and subsequent price surges. Analysts anticipate further price gains this year, with the current market correction potentially setting the stage for another significant surge in the near future.
CryptoQuant released a report analyzing Bitcoin mining metrics, suggesting conditions for a price bottoming at current levels. Ongoing factors such as U.S. monetary policy, geopolitical tensions, and the upcoming U.S. presidential election in November are expected to influence cryptocurrency prices in the coming years.
Edited by Sebastian Sinclair.
