Markets
Bitcoin hovers at $57K as liquidations hit $295M
Photo by Bastian Riccardi on Unsplash.
Main conclusions
- Bitcoin and Ether have seen significant liquidations totaling over $295 million in the past 24 hours.
- Despite the market declines, the options market remains optimistic about future Ether price increases.
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Bitcoin has fallen below $60,000 amid heavy selling pressure, hitting a recent low of around $57,800. The sell-off triggered more than $77 million in long Bitcoin liquidations on centralized exchanges in the past 24 hours, contributing to a total of $295 million in liquidations across the market.
The broader crypto market suffered substantial losses, with ether, the second-largest cryptocurrency, facing more than $71 million in liquidations, of which $62 million were long positions. Solana’s SOL and Dogecoin (DOGE) led the losses among major tokens.
Fears of imminent selling pressure of the extinct Mount Gox Exchange and potential miner sales have contributed to the market decline. Mt. Gox is set to begin distributing assets stolen from customers in a 2014 hack in July 2024, potentially adding selling pressure to both Bitcoin and peripheral cryptocurrency markets.
According to a settlement heat map According to CoinGlass, Bitcoin (BTC) and Ethereum (ETH) dominate with $92M and $72M in liquidations respectively, followed by smaller amounts for other cryptocurrencies over the past 24 hours. The map visualizes the concentration and scale of liquidations across different digital assets. The largest liquidations occur on Binance, OKEx, and Huobi.
Trading firm QCP Capital predicts a subdued market in the coming quarter due to uncertainty surrounding the launch of Mt. Gox’s bitcoin supply.
“We anticipate a subdued Q3 for BTC as the market remains uncertain regarding supply from the Mt. Gox launch,” QCP said in a Thursday Telegram broadcast.
Despite the recent drawdown, derivatives traders are positioning for price increases in the coming months, particularly for ether. Analysts at QCP Capital noted that “the options market is still bullish as we continue to see heavily skewed interest towards ether calls for September and December expiries.”
The market crash also highlighted signs of miner capitulation. According to a separate report from CryptoQuant, total daily revenues among miners have decreased from $79 million on March 6 to $29 million currently, indicating that miners have been underpaid since at least April of this year.
As the cryptocurrency market faces these challenges, traders and investors remain focused on potential catalysts for a price reversal, including the possibility of Ethereum Spot ETFs Approved finally release in mid-Julyaggravated by historical patterns associated with the capitulation of the miners.
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