Bitcoin seems unable to break above the $60,000 price level as it continues to trade in uncertainty. On Saturday, August 3, the cryptocurrency saw another sharp decline, briefly falling below the $60,000 level.
Although this drop only lasted a few minutes, it was very significant, especially since Bitcoin was trading above $62,000 earlier in the day. This volatility has had a significant impact on market participants, resulting in the liquidation of many long positions.
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At the time of writing, over $197 million in leveraged positions have been liquidated in the past 24 hours. It is worth noting that this number rose to Up to $288 million during peak selling pressure.
Bitcoin and Market Clearing
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, closely monitoring its price movements.
This cautious approach is likely to have been amplified by recent reports of Payments initiated by Bankrupt crypto lender Genesis Global Capital, which flooded the market with additional digital assets, primarily Bitcoin and Ethereum.
Given the market dominance of Bitcoin and Ethereum, this cautious approach has inadvertently perpetuated the bearish sentiment surrounding other cryptocurrencies. While Bitcoin and Ethereum have seen the highest liquidity positions, the impact has spread to other digital assets.
According to Coinglass data below, Ethereum led the market with $57.22 million in leveraged liquidations, followed by Bitcoin with $46.19 million and Solana with $15.35 million.
The total liquidation amount was $197.72 million, with the majority ($159.88 million) in long positions. Most of these liquidations occurred on Binance, OKX, and Bybit, with $85.88 million, $65.83 million, and $16.47 million in liquidations respectively, each showing a long liquidation rate of 80%.
The prevailing downward trend
The crypto industry is no stranger to Intermittent qualifiers Of these huge amounts. Given the prevailing bearish sentiment in the short term, most of these liquidations were frequently on long positions. On June 24, Almost witnessed $300 million worth of positions were liquidated in less than 24 hours. Similarly, over $360 million worth of positions were liquidated on June 7 when Bitcoin’s price collapsed from $71,000 to $68,000.
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Recent market dynamics suggest that the industry may still be immune to such a liquidation. Bitcoin is still struggling to hold above $60,000, a trend that could continue in the coming weeks. This is partly because spot bitcoin ETFs, which have historically been a catalyst for bitcoin price rises, ended last week on a negative note. Specifically, they closed Friday’s trading session with outflows of $237.4 million, Largest daily flow Since May 1st.
Featured image from The Michigan Daily, chart from TradingView