Bitcoin’s value dropping below $60,000 sparks a 3% decline within 24 hours, with over 74,000 traders liquidated for $208 million. Factors include geopolitical tensions, U.S. monetary policy concerns, and Mt. Gox repayments, leading to increased volatility.
On Wednesday, the cryptocurrency market experienced a significant decline, with Bitcoin’s value plummeting below $60,000 for the first time in a week. According to CoinGlass data, more than 74,000 traders were liquidated in the past 24 hours, totaling $208 million. Among these liquidations, about $184 million affected investors holding long positions.
Bitcoin’s value dropped from about $62,200 to an intraday low of $59,425 before slightly recovering to trade above $60,200. This represents a 3% decline within 24 hours. Concurrently, Ethereum fell by 3%, hitting a low of $3,254 from a high of $3,425, and is now trading at around $3,300. Solana, experiencing the steepest decline among major cryptocurrencies, saw its value drop by roughly 8% to $140.
Geopolitical tensions, U.S. monetary policy concerns, and uncertainties surrounding the U.S. presidential election are contributing factors to the current volatility. Analysts from CryptoQuant have noted potential for a market bottom at current Bitcoin levels.
The situation is compounded by the anticipated repayments from the defunct Mt. Gox exchange, involving distribution of approximately 142,000 Bitcoin to creditors. This development has added to selling pressures, alongside noticeable net outflows from U.S.-based Bitcoin ETFs, marking a daily decrease of $20.45 million.
In recent developments, Germany’s Federal Criminal Police Office transferred $24 million in seized Bitcoin to Kraken and Coinbase, following a previous transfer of $195 million. Similarly, the U.S. government moved 3,940 Bitcoin to Coinbase, assets confiscated from a convicted drug dealer.
These cumulative events are impacting the market’s dynamics, prompting price fluctuations across leading cryptocurrencies.
