Market Turbulence: Bitcoin Dips Below $61,000 Triggering Massive Liquidations
Derivatives Market Faces a Bloodbath
It’s not just Bitcoin that’s feeling the heat. The broader cryptocurrency derivatives market has seen a staggering $260 million erased from bullish traders’ portfolios across various digital assets, according to data from the derivatives analytics platform CoinGlass. This stark contrast in market dynamics has also highlighted the minor losses incurred by those betting against the market, with short liquidations amounting to a mere $25 million.
The bulk of these long liquidations occurred following a critical announcement by the Mt. Gox trustee, which has undoubtedly influenced market sentiments. The trustee’s declaration that creditors would soon begin receiving their Bitcoin and Bitcoin Cash disbursements has triggered a rapid $110 million in long liquidations across all assets in just the past four hours.
Bitcoin and Bitcoin Cash: A Closer Look at the Impact
Currently, Bitcoin’s price hovers around $60,855, marking one of its lowest points in recent times, a level not seen since mid-May. Over the past month, Bitcoin has seen its value diminish by nearly 12%. Bitcoin Cash has experienced an even harsher fate, plummeting to $350, which represents a 9% decrease in just 24 hours and nearly 30% over the past month.
External Market Influences
Adding to the market’s woes, German authorities have been actively offloading Bitcoin seized from the defunct movie piracy site Movie2k. In a recent move, they sold off $325 million worth of BTC, with nearly $3 billion worth still in their possession. This sell-off could be contributing to the downward pressure on Bitcoin’s price.
Ethereum and Other Cryptocurrencies
Amidst the market chaos, there are outliers such as LEO and FTM, which have managed to record gains of 1.1% and 0.5% respectively, defying the broader market downturn.
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Edited by Stacy Elliott.
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