Bitcoin Plunges Below $62 000 as Crypto Bulls See $290 Million Liquidations

Bitcoin’s rally was short-lived as it plunged below $62,000, resulting in $290 million in liquidations of long and short positions. The anticipated rate cut was delayed, dampening the bullish sentiment in the crypto market. A weak US jobs report caused bond yields and the dollar to drop, usually benefiting assets like Bitcoin. However, Bitcoin was unable to sustain its gain and fell victim to the broader risk-off sentiment. Genesis Trading’s transfer of over $1.5 billion in Bitcoin and Ethereum further contributed to the bearish momentum. Bitcoin, Ethereum, and Solana suffered the most significant liquidations during this market upheaval. The ongoing supply shocks, including the German government’s Bitcoin sell-off and distributions from Mt. Gox, along with outflows from Bitcoin ETFs, added downward pressure to the market.