Bitcoin’s price took a significant hit on Thursday, dropping to $25,300, reaching its lowest point in the past two months. This sudden plunge triggered nearly $1 million in liquidations across the entire cryptocurrency market. However, there was a slight rebound, with Bitcoin trading at $26,386 at the time of writing.
This drop marks the first time Bitcoin has traded this low since mid-June, when Binance and Coinbase faced lawsuits from the Securities and Exchange Commission (SEC). It also occurred just before BlackRock announced its plans for a Bitcoin spot ETF. These events have contributed to the recent volatility in the crypto market.
According to Coinglass, the past 24 hours saw over $788 million in liquidations, with a staggering $812 million occurring in the last hour alone. Approximately half of these liquidations were related to Bitcoin trades, while around $245 million were associated with ETH trades.
One notable liquidation took place on Binance, involving an ETH-BUSD trade, which resulted in a trader losing a staggering $55.92 million. In total, there have been more than 164,000 liquidations during this period.
In addition to the market turmoil, news broke that Elon Musk’s SpaceX has sold off the remainder of its Bitcoin holdings. The company reportedly wrote down the value of its Bitcoin from last year by $373 million. This development adds to the growing concerns surrounding the cryptocurrency market.
The recent price drop and liquidations underscore the volatility and risks associated with investing in cryptocurrencies. Traders and investors must remain vigilant and exercise caution in such a dynamic market.
Please note that this article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any investment decisions.