Markets
Bitcoin Price Drops to $54,200 Amid Market Volatility
Bitcoin (BTC) Price volatility continues to challenge investors. On Monday morning, it fell to $54,200, erasing gains from a peak of around $58,500 over the weekend.
The last few hours have been particularly turbulent, with significant fluctuations and liquidations characterizing the market.
Bitcoin Causes Over $100 Million in Liquidations in Last 4 Hours
Despite a promising recovery attempt on Sunday, Bitcoin faced stiff resistance that led to a sharp decline. In just four hours, the market experienced liquidations totaling $113 million, comprising $70 million long positions and $42.64 million short positions. Overall, nearly $250 million worth of trades were liquidated in the past 24 hours, indicating persistently unstable conditions.
Avinash Shekhar, co-founder of cryptocurrency derivatives exchange Pi42, provided insights into market volatility in an interview with BeInCrypto.
“Bitcoin price is locked in a tug-of-war between bulls and bears. Sellers pulled the price down to near $53,500 on July 5, but lower levels attracted buying by the bulls. Then, the bears again pushed the price down from $58,300 to $54,200 on the morning of July 8,” Shekhar told BeInCrypto.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Cryptocurrency Liquidations. Source: Coin Glass
Meanwhile, Japanese investment firm Metaplanet has taken strategic steps to strengthen its position in the cryptocurrency market. On July 8, announced a purchase of 42.47 Bitcoins, worth approximately US$2.35 million.
This comes after the company announced on June 24 that it would issue a $6.2 million bonds to bolster its Bitcoin holdings. The decision aims to improve Metaplanet’s financial stability by incorporating Bitcoin as a reserve asset. The company seeks to mitigate risks associated with Japan’s economic challenges, including high government debt and sustained negative real interest rates.
Meanwhile, the potential Selling pressures loom over Mt. Gox investors and the German government. Recent reports indicate that Bitcoin addresses linked to German authorities transferred 700 BTCvalued at $40.47 million, to an unidentified ‘139PoP’ address last weekend, as identified by Arkham’s on-chain analysis.
This activity is part of a broader pattern of behavior. German governmentwho recently moved significant amounts of Bitcoin to major exchanges like Coinbase, Bitstamp, and Kraken. These moves followed the seizure of 50,000 BTC earlier this year on the movie piracy website Movie2k.
Read more: Who owns the most Bitcoin in 2024?
The balance between optimism and caution in the cryptocurrency market continues to spark debate and speculation among stakeholders. However, sentiments are more aligned with fear. The Crypto Fear and Greed Index indicates a score of 28, which is in the fear zone.
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