Bitcoin Price Correction Provides Room for Future Rally, Analysts Suggest
Bitcoin Price – In the past 24 hours, Bitcoin long liquidations have surged to nearly $68 million as the price of the leading cryptocurrency fell below the $67,000 mark. According to data from Coinglass, Bitcoin’s long liquidations across centralized exchanges amounted to over $68 million out of a total of $75 million in liquidated BTC positions. The broader cryptocurrency market experienced a significant impact, with total liquidations exceeding $167 million during the same period. Approximately $143 million of these liquidations were long positions.
Ethereum Traders Also Hit Hard
The second-largest cryptocurrency by market capitalization, Ethereum (ETH), also faced substantial liquidations on leveraged positions across exchanges. Over $40 million worth of ETH positions were liquidated, with more than $33 million attributed to long positions. Liquidations typically occur when a trader’s position is automatically closed due to insufficient funds to maintain it, often triggered by price movements that deplete the initial margin or collateral.
US Government Bitcoin Transfers Contribute to Market Downturn
Adding to the market turbulence, recent Bitcoin transfers from a wallet reportedly associated with the U.S. government have exacerbated the downturn. On Monday, a wallet labeled as belonging to the U.S. government transferred $2 billion worth of Bitcoin to an undisclosed wallet, according to Arkham Intelligence data. This transfer involved nearly 28,000 BTC and is believed to be connected to funds previously seized from the now-defunct dark web marketplace Silk Road by the U.S. Department of Justice.
Potential Upside for Bitcoin Amidst Price Correction
Despite the recent decline, Bitcoin is currently trading at $66,735, reflecting a nearly 4% drop in the past 24 hours. BRN lead analyst Valentin Fournier views the recent price correction as a potential positive development. He stated, “This consolidation phase can provide a stronger foundation for a future rally.” Fournier highlighted several macroeconomic factors that may drive Bitcoin’s future growth, including anticipated interest rate cuts, growing institutional adoption, increasing interest from developed nations in holding Bitcoin as a reserve asset, and a robust U.S. economy.
Market Dominance and Global Cryptocurrency Market Cap
Bitcoin’s market dominance stands at 52.5%, while Ethereum’s dominance is at 16%, according to Coingecko data. The global cryptocurrency market cap has decreased by approximately 3.2% over the past day, now standing at $2.51 trillion. This reduction reflects the broader impact of recent market fluctuations and the ongoing volatility within the cryptocurrency sector.
This overview encapsulates the current state of Bitcoin and the cryptocurrency market, highlighting key factors influencing recent price movements and market dynamics.
FAQ
What caused the recent surge in Bitcoin long liquidations?
The recent surge in Bitcoin long liquidations, reaching nearly $68 million, was caused by a drop in Bitcoin’s price below $67,000. This significant price decline triggered automatic liquidations on leveraged positions across various exchanges.
How much in total crypto positions were liquidated in the past 24 hours?
In total, crypto exchanges saw $161 million in positions get liquidated over the past 24 hours. Of this amount, approximately $153 million were long positions.
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