Liquidations of more than USD $160 million after Bitcoin falls below USD $60,000 – DiarioBitcoin
By Hannah Perez
Bitcoin briefly fell below $60,000 on Wednesday, triggering a cascade of long liquidations in the market. Bearish winds from the FED and Mt. Gox contribute to the price decline.
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- Bitcoin fell below $60,000, triggering long liquidations
- The cryptocurrency market was the victim of liquidations for USD $161 million
- Two main factors are putting downward pressure: Mt. Gox payments and the FED
The cryptocurrency market is facing large-scale liquidations as Bitcoin (BTC) dipped below the key support of USD $60,000.
The world’s largest and oldest cryptocurrency erased the week’s gains this morning (EDT) as it slid towards the $59,800 area, triggering a cascade of liquidations worth over $160 million in the market.
The data from Coinglass reveal that there have been liquidations of leveraged positions on major centralized exchanges worth USD $161.8 million over the past 24 hours. The majority of these, or almost USD $140 million, corresponds to long positions, that is, bets on higher prices.
Some 56,500 traders suffered losses, according to the data, and Bitcoin has been the most affected, witnessing liquidations worth USD $46 million, of which USD $41.4 million are long positions.
Liquidations occur when a service provider forcibly closes a trader’s leveraged position due to a margin deficit. In other words, traders’ positions are liquidated when they lack sufficient funds to keep the trade open, and it occurs when market movements go against the trader’s bet.
Bearish winds: Mt. Gox and the FED
The wave of liquidations in the cryptocurrency market occurred when Bitcoin continued bearish price action following a modest recovery on Monday that saw Bitcoin momentarily recover the USD $63,000 area.
The largest cryptocurrency by market cap is now trading around $60,200 with a daily decline of almost 4% amid bearish headwinds.
On Tuesday, US Federal Reserve (FED) Chairman Jerome Powell said inflation is slowing, but central bank officials still need more evidence before implementing an interest rate cut. He spoke about the difficulty of maintaining a balance, as if they cut too soon, inflation could accelerate again, forcing them to reverse monetary policy; but if they take too long to do so, the economy could suffer.
Investors and traders have been closely watching U.S. economic data for signs of an expected easing of monetary policy that appears to be far from coming.
Meanwhile, within the digital currency sphere, payments to victims of the defunct cryptocurrency exchange Mt. Gox are approaching, which seems to be collaborating with the bearish pressures.
“Mt Gox is also scheduled to launch this week. This overhang of up to 140,000 BTC should continue to weigh on the markets, especially since the exact release schedule is unknown at this time.“, the Singapore-based cryptocurrency trading firm noted, QCP Capital.
Optimism for the second half of 2024
BTC closed June down 7% but is still up 96% for the year. It has corrected nearly 18% since March, when it hit its last all-time high above $73,000.
Article by Hannah Estefanía Pérez / Bitcoin Diary
Picture of Unsplash
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