Bitcoin Surges Past 63K Dollars: Crypto Longs Face 600M Dollars Liquidation Blow

Crypto News- Bitcoin (BTC) made a swift recovery during the European morning hours on Wednesday, bouncing back from the day’s lows to reclaim the $63,000 mark. This rebound came after a brief dip below $61,000 during early Asian trading hours.

Despite the recovery, the market experienced significant liquidations totaling nearly $600 million, indicating ongoing volatility. Both long and short positions in futures trading remained evenly split at 50%, reflecting uncertainty among traders.

Bitcoin Surges Past 63K Dollars: Crypto Longs Face 600M Dollars Liquidation Blow

While major tokens stabilized, they still saw drops of up to 15%, according to data from CoinGecko. The CoinDesk 20 index, which tracks major tokens excluding stablecoins, showed minimal change over the past 24 hours, with losses limited to just 0.34%.

Ether (ETH) briefly dipped below $3,100 on Tuesday night amid decreased expectations for the approval of a spot ETH exchange-traded fund (ETF) anticipated for May. Other layer-1 blockchains like Solana (SOL), Avalanche (AVAX), and Cardano (ADA) also experienced declines of around 8% within the same period. Conversely, meme coins and exchange tokens outperformed, seeing a modest 5% decrease.

Over the past week, the overall market capitalization dropped by nearly 15%, with the total cap falling to $2.28 trillion by Wednesday morning before rising to $2.35 trillion at the start of active trading in Europe.

Some traders are interpreting Bitcoin’s price action as indicative of a downtrend, emphasizing the importance of macroeconomic factors in investment decisions. Attention is particularly drawn to the upcoming meeting of the U.S. Federal Reserve’s Open Market Committee (FOMC), where interest rates and economic conditions will be discussed.

“Bitcoin remains in a downtrend, characterized by a pattern of lower lows and lower highs,” noted Alex Kuptsikevich, a senior market analyst at FxPro, in an email to CoinDesk. “We will be closely monitoring Bitcoin’s movement around key support levels, including $60.3K, $56K, and $51.5K.”