Bitcoin Plunge to Monthly Lows Sparks $150 Million in Liquidations
Bitcoin's recent dip below the $30,000 mark has sent shockwaves through the market, resulting in nearly $150 million worth of liquidated positions on a daily scale. The cryptocurrency's value fell to $29,000 for the first time since June 21, causing significant losses for over-leveraged traders. The decline in BTC's price led to a surge in liquidations, with the majority of the affected positions being long positions. Notably, the largest liquidation occurred on the OKX exchange and involved a BTC position valued at over $2.5 million. Merely two weeks ago, Bitcoin was on a high following Ripple's partial court victory against the SEC, propelling the cryptocurrency and the market to new multi-year highs. However, the bullish momentum could not be sustained, and BTC fell back into a tight trading range between $30,000 and $30,500. Over the weekend, the asset dipped below the significant $30,000 milestone, and today, bears pushed it even further down to $29,000. This price point marked the lowest since the upward surge on June 21, which occurred shortly after BlackRock filed for a spot BTC ETF. The market's volatility has also impacted larger-cap altcoins, causing some to suffer even worse losses than Bitcoin. XRP, for instance, lost nearly 7% of its value in a single day, settling below $0.7. Other altcoins like LINK, XLM, ICP, and TONCOIN also experienced significant losses. Interestingly, Dogecoin stood out as the only cryptocurrency in the green on this particular day, potentially influenced by developments at Twitter. The heightened volatility and price movements have resulted in more than 50,000 liquidated positions, and the cumulative value of these wrecked positions is close to $150 million. The overwhelming majority of these liquidations were from long positions, reflecting the bearish sentiment in the market. Traders who were over-leveraged found themselves facing significant losses amid the sudden price drop. As the market continues to experience ups and downs, it is essential for traders to exercise caution and manage their risk effectively to navigate through such volatile conditions.