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Bitcoin Crashes: Dip To $65,000 Triggers Over $400 Million Liquidation Avalanche

In a tumultuous turn of events, the cryptocurrency market has been rattled by a sharp decline in Bitcoin prices. After a sustained period of remarkable gains and record highs, Bitcoin has plunged to a weekly low of $65,000, marking a significant setback for investors.

At the time of writing, Bitcoin numbers were all painted in red, and trading at $65,710, losing value in the 24-hour and weekly timeframes by 5.6% and 4.5%, respectively, according to data from Coingecko.

A few days after its previous low of $68,000, Bitcoin plummeted to its present level, a figure not seen in a week, as bears persisted in their downward pressure.

Altcoins Also Take A Beating

While Bitcoin bears the brunt of the downturn, altcoins are not spared from the fallout. Ethereum (ETH) and Binance Coin (BNB) have also witnessed substantial losses, shedding 10% of their value or more.

Dogecoin and Shiba Inu, two popular meme coins, have experienced even steeper declines, plunging by 20% and nearly 30%, respectively. The broader altcoin market mirrors Bitcoin’s downward trajectory, amplifying the sense of unease among investors.

Bitcoin: Impact On Market Dynamics

The recent price correction in Bitcoin has reverberated 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, underscores the magnitude of the market upheaval. Bitcoin’s dominance in the market is evident as it accounts for the lion’s share of the total liquidations, highlighting its pivotal role in shaping overall market trends.

As a result of the decline in value, the total market liquidations have reached $426 million, with Bitcoin taking the worst hit.

Liquidation Spree

The amount that the price of Bitcoin has liquidated over the last 24 hours has exceeded $104 million, with long traders losing the most money—they lost $86 million compared to $18 million for short sellers. Ethereum saw a $48 million overall liquidation, with $33 million going to long traders and $15 million going to short traders, as a result of the losing run.

Analyst Sounds Alarm Siren

Meanwhile, market analysts such as Markus Thielen, CEO of 10x Research, have sounded the alarm bells, 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 exacerbate the risk of sharp price corrections.

Amidst the market turbulence, investors are grappling with the implications of Thielen’s analysis and adjusting their strategies accordingly. The era of meme coin mania appears to be waning, prompting investors to reassess their positions and secure profits while they still can.

Featured image from Kinesis Money, chart from TradingView

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Bitcoin Speed Bump: A Week’s Surge Crumbles In Just 20 Minutes

After hitting $43,000 last week, Bitcoin traded just below it over the weekend. But the price of the cryptocurrency dropped significantly on Tuesday, reaching $41,800. Following Bitcoin’s December surge, investors chose to take profits, which led to this fall. There was a significant decline the night before, with Bitcoin momentarily falling as low as $40,300.

Due to the decline, the top cryptocurrency in the world had almost a week’s worth of gains erased in only 20 minutes on Sunday night. According to statistics from TradingView, Bitcoin saw a dramatic 7% decline at approximately 9:00 p.m. Eastern Time, falling from above $43,200 to as low as $40,290.

Bitcoin Liquidations And Stock Fluctuations

Following months of stagnation in a limited trading range, Bitcoin has been steadily rising in recent weeks. The cryptocurrency has seen a notable change in mood and performance after previously experiencing market disinterest.

Coinglass data indicates a flurry of positions liquidated in the 12 hours starting on Sunday evening, with upwards of $335 million in liquidations across cryptocurrencies, and roughly $300 million of that in long positions. The reason for the abrupt swing down was not immediately evident. In just Bitcoin alone, liquidations totaled over $89 million.

Stocks have fluctuated this week as investors prepare for a busy event schedule. Expectedly high volatility this week—the Federal Reserve’s most recent monetary policy decision is due on Wednesday, and important November inflation data is coming on Tuesday—is the cause of this anxiety.

Related Reading: Hold Your Horses: Bitcoin Could Fall Back To Under $38,000, These Analysts Say

When assessing the present rise in bitcoin, chart analysts all agree that a more significant dip in the cryptocurrency would be necessary before they would reevaluate how strong the rally is.

Rob Ginsberg from Wolfe Research agrees, pointing out that there is a lot of momentum in the continuing rising trend. According to the consensus of industry professionals, there is a general belief in the durability and longevity of Bitcoin’s upward trajectory.

Still A Bright Road Ahead

A number of favorable catalysts for the cryptocurrency is seen in the upcoming year, with the first being the possibility of a bitcoin exchange-traded fund (ETF). Investors anticipate a price spike in the months that follow the anticipated halving of Bitcoin in the spring of 2024.

Although some investors are excited by the prospect of an ETF, the market as a whole is feeling positive and anticipating significant changes to the cryptocurrency environment.

The price of Bitcoin has risen by about 150% since the start of the year, despite the hiccup. The main driver of the surge has been expectations that large financial institutions will soon be able to purchase significant exposure to Bitcoin through exchange-traded funds (ETFs).

The market’s common expectation that the US Federal Reserve would start cutting interest rates in the middle of 2024 has added to the support for Bitcoin’s price climb.

Featured image from Adobe Stock

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Bitcoin Liquidations Top $500 Million Amid $1 Billion Crypto Decimation

Bitcoin liquidations have been ramping up over the last day following the market crash that rocked the crypto space on Thursday. The result of this is a liquidation event, the likes of which have not been seen since the FTX collapse back in 2022. And Bitcoin’s numbers have shot up as long traders are completely obliterated in the process.

Largest Single Crypto Liquidation Event In 2023

Following Bitcoin’s price decline to the low $25,000s, the liquidations picked up quickly with over $1 billion dollars of crypto positions being closed rapidly. Bitcoin, in particular, suffered the brunt of these liquidations as its numbers quickly climbed to 9 digits.

By the time Friday morning rolled around, the digital asset’s liquidation was at approximately $500 million with long traders suffering the majority of losses. According to data from Coinglass, Bitcoin’s long liquidation figures were already over $373 million, with shorts coming in at $125 million.

Bitcoin liquidations

While Bitcoin was in the lead as expected, Ethereum was not that far behind. The second-largest cryptocurrency by market cap saw an even larger proportion of long liquidations compared to shorts. Out of the $308 million in liquidations, long traders lost $254.59 million while short traders came in at $54.3 million.

Ethereum also saw the largest single liquidation order. The order which was worth $55.92 million at the time took place on the Binance crypto exchange across the ETH/BUSD pair. However, the OKX exchange saw the largest Ethereum liquidations at $108.87 million, 92.8% of which were longs.

The Tide Is Starting To Turn For Bitcoin

Following the initial plummet, Bitcoin began to show strength which saw its price add over $1,000. This recovery to $26,000 signaled a possible turn for the digital assets and the shorters began to feel the heat at this point.

In the last four hours, long traders have gotten some reprieve as $8.53 million of the $10.96 million in liquidations so far were short trades. However, long traders are still not left out with $2.46 million in liquidations as well.

Since the Bitcoin price remains extremely volatile at this point, liquidation volumes are expected to rise. However, there is no indication so far of where the price of the digital asset might be headed next as bulls and bears continue a tug-of-war for control.

Bitcoin is currently trading at a price of 26,451, representing a price decline of 7.48% over the last day, according to data from Coinmarketcap. The asset has also seen a 110% increase in daily trading volume which is now sitting at $34.47 billion.

Bitcoin price chart from Tradingview.com (Liquidations)