Bitcoin Hits 6% Decline as Crypto Market Sees Massive Liquidations Worth $314 Million
With a significant sell-off in the crypto market, over $313 million was liquidated within the past 24 hours. The major liquidation predominantly stemmed from long positions, resulting in bulls liquidating over $282.05 million. The bearish sentiment surrounding Bitcoin (BTC) could potentially lead to a further drop to the $54,000 level or even lower.
The decline in Bitcoin’s price can be attributed to the repayment of approximately $2.5 billion by bankrupt crypto lender Celsius to its 251,000 creditors. This repayment caused selling pressure after the US stock market closed.
Alongside Bitcoin’s drop, other leading cryptocurrencies such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also experienced a significant slump reminiscent of the market crash in August 2024. CoinGlass data reveals that more than 85,500 traders were liquidated in the past 24 hours, resulting in total liquidations worth $314.19 million. The largest liquidation order, valued at $12.67 million, occurred on Binance ETHBTC.
The liquidations primarily came from long positions, indicating that bullish traders had anticipated an upside rally that did not materialize. Long positions worth $282.05 million were liquidated during this period. In contrast, short sellers only liquidated $31.70 million worth of short positions.
Currently, BTC is trading around the $59,200 level, having experienced a 6% drop in price within the last 24 hours. Despite the price decline, trading volume has increased by 36%, suggesting heightened participation from traders. Technical analysis suggests a bearish outlook for BTC, with a high likelihood of a downtrend to the $54,000 level or below if the crucial ascending trendlines are broken.
While 251,000 creditors have received repayment from Celsius, there are still 121,000 creditors awaiting funds. If these creditors also receive their repayments, it could create further selling pressure and potentially lead to more declines in the market. So far, Celsius has distributed approximately $2.57 billion, representing around 36% of the total repayment amount.