- Bitcoin witnessed a substantial drop, leading to the liquidation of over $420 million in long positions within 24 hours
- 190,144 traders were liquidated, with total liquidations reaching $480.93 million, out of which $420 million were long positions
- Major cryptocurrency exchanges like Binance, OKX, and HTX witnessed approximately $372 million in long positions being liquidated
Bitcoin, the world’s premier cryptocurrency, recently experienced a substantial drop in value. This led to the liquidation of over $420 million in long positions within 24 hours, as reported by CryptoNews on Tuesday.
The Sudden Dip in Bitcoin’s Value
Data from Coinglass shows that 190,144 traders were liquidated, with total liquidations reaching $480.93 million. Out of this amount, $420 million were long positions. Major cryptocurrency exchanges including Binance, OKX, and HTX saw approximately $372 million in long positions liquidated.
Bitcoin’s value plummeted to a low of $64,600 during the early Asian trading hours on Tuesday. It has since seen a slight recovery, trading above $65,700 at the time of writing.
Impact on Altcoins
This sudden dip in Bitcoin’s value also resulted in a significant drop in altcoins. Ethereum dipped nearly 4% in the same 24-hour period. Other popular altcoins like Solana, Toncoin, and Cardano also saw drops between 6-8%.
Top meme coins including Dogecoin, Shiba Inu, Dogwifhat and Floki experienced even steeper declines, with some down well over 10%. The sudden dip in Bitcoin’s value had a domino effect on altcoins, causing them to plummet as well. This indicates the strong correlation between Bitcoin and other cryptocurrencies.
Potential Impact of Lower Interest Rates
Meanwhile, the Federal Reserve’s plan to cut rates only once in 2024 could potentially impact the cryptocurrency market. Lower interest rates often lead to higher inflation, which could drive more investors towards cryptocurrencies as a hedge.
Conclusion
The sudden dip in Bitcoin’s value and liquidation of long positions highlights the volatile nature of the cryptocurrency market. This volatility resulted in significant losses, particularly for traders holding long positions. Furthermore, Bitcoin’s decline caused altcoins to fall as well due to their strong correlation.
