- Bitcoin (BTC) price dumped to a 2-week low of under $62,000, resulting in $350 million in liquidations.
- Nearly 120,000 traders have been liquidated in the past 24 hours, with long positions bearing the brunt.
- The massive volatility in the crypto market led to these liquidations, despite the Fed Chair hinting at two more rate cuts by the end of the year.
Bitcoin’s price has taken a steep dive over the past day, plummeting to a multi-week low below $62,000. This massive volatility has completely wrecked over 120,000 traders, resulting in an eye-watering $350 million in liquidations.
The Recent Price Action
After recovering some ground following yesterday’s dip below $63,000, Bitcoin stood close to $64,000 this morning. However, the cryptocurrency was rejected there and was pushed south aggressively. At first, it dropped to $63,000 once again, but the bears kept up the selling pressure and drove it down to a two-week low of $61,800 on Bitstamp earlier today.
The bulls managed to slow the decline and Bitcoin has recovered about $1,000 since then. Most altcoins have followed suit, with ETH slipping by over 3% in the past 24 hours, SOL dropping by 3.6%, and DOGE plummeting by over 5%.
The Fed Rate Cuts
Interestingly, this price drop comes even after Jerome Powell, the Fed Chair, said yesterday that he foresees two more rate cuts for the US central bank by the end of the year.
The previous rate slash in mid-September had resulted in a price rally for the largest cryptocurrency, which jumped from $59,000 on September 18 to over $66,000 about ten days later.
The Liquidations
This massive volatility in the crypto market has liquidated almost 120,000 over-leveraged traders in the past day. The total value of wrecked positions is up to $350 million. Long positions are responsible for the lion’s share, but neither BTC nor ETH occupy the first spot.
Conclusion
The recent price action shows just how volatile the crypto markets can be. Over 120,000 traders have been completely wiped out from Bitcoin’s latest drop, totaling a staggering $350 million in liquidations. It will be interesting to see if the bulls can regain control and push the price back up over the coming days and weeks.
