bitcoin can’t seem to leave the $60,000 price level as it continues to trade in uncertainty. On Saturday, August 3, the cryptocurrency experienced another sharp drop, briefly dipping below the $60,000 mark.
Although this drop lasted only a few minutes, it was quite significant, especially considering that bitcoin had traded above $62,000 earlier that day. This fluctuation has had a significant impact on market participants, leading to the liquidation of numerous long positions.
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At the time of writing, leveraged positions worth over $197 million have been liquidated in the past 24 hours. It is worth noting that this figure x.com/radarhits/status/1819729806952448143?s=48″ target=”_blank” rel=”nofollow”>rose to up to $288 million at the peak of selling pressure.
bitcoin and market liquidations
bitcoin’s continued inability to maintain a stable position above $60,000 highlights the uncertainty and speculative nature of the cryptocurrency market. Traders and investors remain cautious and keep a close eye on its price movements.
This cautious approach has likely been amplified by recent reports of x.com/radarhits/status/1819729806952448143?s=48″ target=”_blank” rel=”nofollow”>Refunds initiated by bankrupt cryptocurrency lender Genesis Global Capital, which flooded the market with additional digital assets, primarily bitcoin and ethereum.
Considering bitcoin and ethereum’s dominance over the market, this cautious approach has inadvertently led to persistent bearish sentiment around other cryptocurrencies. Although bitcoin and ethereum experienced the highest liquidated positions, the impact has spread to other digital assets.
According to Coinglass data below, ethereum led the market with $57.22 million in liquidated leveraged positions. bitcoin followed closely behind with $46.19 million in liquidations and Solana with $15.35 million.
The total liquidation amount reached $197.72 million, the majority of which ($159.88 million) was in long positions. The majority of these liquidations occurred on Binance, OKX, and Bybit, with $85.88 million, $65.83 million, and $16.47 million in liquidations, respectively, each exhibiting a long liquidation rate of 80%.
Prevailing pessimism
The cryptocurrency industry is no stranger to sporadic liquidations of such large amounts. Given the prevailing short-term bearish sentiment, most of these liquidations have occurred repeatedly in long positions. On June 24, the market witnessed almost Positions worth $300 million were liquidated in less than 24 hours. Similarly, positions worth over $360 million were liquidated on June 7 when the price of bitcoin plummeted from $71,000 to $68,000.
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Recent market dynamics suggest that the industry may not be out of the woods yet when it comes to these types of liquidations. bitcoin continues to struggle to stay above $60,000, a trend that could persist in the coming weeks. This is partly because spot bitcoin ETFs, which have historically been a catalyst for bitcoin price increases, ended last week on a negative note. Specifically, they closed Friday's session with $237.4 million in outflows, x.com/radarhits/status/1819729806952448143?s=48″ target=”_blank” rel=”nofollow”>The largest daily departure since May 1st.
Featured image from The Michigan Daily, chart from TradingView
