Bitcoin Plummets: $65,000 Drop Sparks $400 Million Liquidation Frenzy
In a dramatic turn of events, the cryptocurrency market has been shaken by a steep decline in Bitcoin prices. Following a period of impressive growth and reaching new all-time highs, Bitcoin has experienced a sharp drop to a weekly low of $65,000, delivering a significant blow to investors.
As of now, Bitcoin prices are in the red, trading at $65,710, with a 5.6% daily decrease and a 4.5% weekly decline, according to data from Coingecko.
Just days after its previous low of $68,000, Bitcoin plummeted to its current level, the lowest in a week, as bearish pressure continued to dominate the market.
Bitcoin’s drop over the last 24 hours. Source: Coingecko.
Altcoins Also Affected
While Bitcoin bears the brunt of the downturn, altcoins are not immune to the consequences. Ethereum (ETH) and Binance Coin (BNB) have also suffered significant losses, shedding 10% or more of their value.
In addition, popular meme coins like Dogecoin and Shiba Inu have experienced even steeper declines, plunging by 20% and nearly 30% respectively. The broader altcoin market reflects Bitcoin’s downward trajectory, intensifying concerns among investors.
BTC currently holds a market cap of $1.29 trillion. Chart: TradingView.com
Bitcoin: Impact on Market Dynamics
The recent price correction in Bitcoin has had a ripple effect across the cryptocurrency landscape, reshaping market dynamics and investor sentiment. The surge in liquidations, with over 151,000 traders facing margin calls in the past 24 hours, highlights the magnitude of the market upheaval. Bitcoin’s dominance is evident in the majority of these liquidations, emphasizing its crucial role in shaping overall market trends.
As a result of the decline in value, total market liquidations have reached $426 million, with Bitcoin taking the biggest hit.
Liquidation Frenzy
The liquidations in the past 24 hours have surpassed $104 million in Bitcoin alone, with long traders being hit the hardest, losing $86 million compared to $18 million for short sellers. Ethereum has also experienced a $48 million overall liquidation, with long traders losing $33 million and short traders losing $15 million in this losing streak.
Analyst Raises Concerns
Meanwhile, market analysts, such as Markus Thielen, CEO of 10x Research, have sounded the alarm, warning of further downside risks for Bitcoin. Thielen’s prediction of a potential drop to $63,000 sends a sobering message to investors, urging caution and prudence in navigating the current market environment.
His insights shed light on underlying concerns about Bitcoin’s market structure, including low trading volumes and liquidity, which further increase the risk of sharp price corrections.
Amidst the turbulent market conditions, investors are grappling with the implications of Thielen’s analysis and adjusting their strategies accordingly. The hype surrounding meme coins appears to be fading, leading investors to reevaluate their positions and secure profits while they still can.
Featured image from Kinesis Money, chart from TradingView