Bitcoin
Bitcoin’s Sudden Drop Triggers Mass Liquidation of Long Positions Worth $420 Million
Bitcoin’s Sudden Drop Triggers Mass Liquidation of Long Positions Worth $420 Million
In a recent development, Bitcoin, the world’s leading cryptocurrency, witnessed a substantial drop, leading to the liquidation of over $420 million worth of long positions in a 24-hour period, as reported by CryptoNews on Tuesday.
Data from Coinglass reveals that 190,144 traders were liquidated, with total settlements reaching $480.93 million. Of this total, US$420 million were long positions. Major cryptocurrency exchanges such as Binance, OKX, and HTX witnessed the liquidation of approximately $372 million in long positions.
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Bitcoin’s value plummeted to $64,600 during early Asian trading on Tuesday, but has since made a slight recovery, trading above $65,700 at the time of writing. This sudden drop in Bitcoin’s value also resulted in a significant drop in altcoins, with Ethereum dropping almost 4% in the same 24-hour period.
Other popular altcoins like Solana (SUN), Toncoin (TON)It is Cardano (ADA) also recorded significant drops, of 8%, 6% and 8%, respectively. Top meme coinsincluding Dogecoin (DOGE), Shiba Inu, PEPE, Dogwifhat and Floki, experienced even steeper drops, with some drops well over 10%.
The sudden drop in the value of Bitcoin and the subsequent liquidation of long positions highlights the volatile nature of the cryptocurrency market. This volatility can lead to significant losses for traders, especially those holding long positions.
Furthermore, the drop in the value of Bitcoin also had a domino effect on altcoins, causing them to plummet as well. This indicates the strong correlation between Bitcoin and other cryptocurrencies, suggesting that a drop in Bitcoin’s value could have a widespread impact on the entire cryptocurrency market.
Meanwhile, the Federal Reserve’s plan to cut rates just once in 2024, down from its previous forecast of three, as it continues to monitor US inflation rates, could potentially impact the cryptocurrency market. Lower interest rates often lead to higher inflation, which could lead more investors to opt for cryptocurrencies as a hedge against inflation.
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This article Bitcoin’s Sudden Drop Triggers Mass Liquidation of Long Positions Worth $420 Million originally appeared in Benzinga. with
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