With the price of Bitcoin dropping below the $30,000 mark, the crypto market has witnessed a surge in liquidated positions, totaling nearly $150 million on a daily basis. Majority of these liquidations were from long positions, and the largest one occurred on OKX exchange. This decline comes just two weeks after Bitcoin reached new multi-year highs following Ripple’s legal victory against the SEC.
Bitcoin, along with the rest of the market, experienced a significant rally, but failed to sustain its momentum. The leading cryptocurrency has been trading within a tight range of $30,000 to $30,500. However, over the weekend, Bitcoin slipped below the $30,000 milestone, and today it dropped even further, reaching $29,000. This marks the lowest price point for Bitcoin since its surge on June 21, which was triggered by BlackRock’s filing for a spot BTC ETF.
Not only Bitcoin, but most of the larger-cap altcoins have also suffered losses. XRP, for instance, has lost nearly 7% of its value in a single day and is now trading below $0.7. Other altcoins like LINK, XLM, ICP, and TONCOIN have also experienced significant declines. Interestingly, Dogecoin is the only cryptocurrency that has seen gains today, possibly influenced by recent developments on Twitter.
The increased volatility in the market has had a detrimental impact on over-leveraged traders, leading to a surge in liquidated positions. The total number of liquidations has surpassed 50,000, with the total value of these positions nearing $150 million. Long positions account for over 90% of the liquidations. The largest single liquidated position, worth more than $2.5 million, occurred on OKX and involved Bitcoin.
It is evident that the recent market downturn has resulted in significant losses for traders, highlighting the importance of risk management and cautious trading strategies in the volatile crypto market.
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