The price of Bitcoin reportedly declined below the $64,000 price, which impacted the overall crypto market, triggering $210 million in liquidations within 24 hours.
Bitcoin’s significant decline had a widespread impact on the overall market, majorly affecting altcoins, which experienced larger drops than BTC. In the last 24 hours, Solana (SOL) plummeted by over 7%, currently trading around $146 per token.
Similarly, other altcoins such as Bitcoin Cash (BCH) Cardano (ADA), Toncoin (TON) Avalanche (AVAX), and Polkadot (DOT) also saw significant declines of 7%, 6.35%, 9.91%, 7.5%, and 6.07%, respectively. Even meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) were not spared, facing drops of 7.20% and 8.38%, respectively, during this period.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
The decline in the price of Bitcoin is occurring after it surged above $67k with predictions that it would continue on an upward trajectory. However, despite maintaining a strong position above $66k for a few days the crypto asset has faced a significant decline, trading at $63,945, at the time of writing this report.
According to a report from Coinglass liquidation data, this decline has intensified pressure on bullish investors and over-leveraged traders with long positions.
In the last 24 hours, the overall crypto market recorded approximately 91,704 leveraged positions being liquidated. Long traders bore the brunt of the losses, with a total of $178 million liquidated across various layer 1 blockchain, which include Ethereum and Solana.
Also, short traders were not exempted as they experienced significant losses, with liquidations exceeding $32 million during the same period. In the past hour alone, both long and short traders collectively suffered losses amounting to $132.28 million. Presently, the entire crypto market capitalization stands at $2.37 trillion, indicating a 3.97% decrease over the past 24 hours.
Following the just concluded Bitcoin Halving, in which new Bitcoins are created and are often heralded by a bullish price movement, several analysts predict that this year’s post-halving bullish move might take a different twist. They pointed out that Bitcoin’s price trajectory over the past years has been shaped by several external factors such as economic trends, monetary policies, the stock market, etc.
With the current geopolitical tension in the Middle East, they predict that its impact might be felt in the crypto market. Several traders have warned that the price of Bitcoin will drop to levels not seen for almost two months if the conflict between Iran and Israel escalates.
A worsening situation in the Middle East could see the price of Bitcoin drop to around the $58,000 mark, according to Jonathan de Wet, chief investment officer at digital asset trading firm Zerocap.