Bitcoin
Recent price drop explained
Bitcoin (BTC) the price fell to a one-month low after three consecutive days of trading exits of your exchange-traded funds (ETFs) in cash.
The leading digital asset rose to $67,000 before falling to around $64,500 during early Asian trading. Other major cryptocurrencies like Ethereum (ETH), Solana (SUN)and Toncoin (TON) also saw significant declines, each losing more than 3%.
Markus Thielen, founder of 10x Research, posited that the recent drop in altcoin prices was anticipated due to last week’s significant token unlocks. He noted that digital assets such as Aptos, IMX, Starknet, SEI and Arbitrum had unlocks totaling US$483 million. This situation pressured venture capital investors to withdraw money, contributing to the downward pressure on Bitcoin.
He added:
“As altcoin volumes in Korea fell, so did funding rates, and this caused Bitcoin ETF flows to slow down. It was a surprise that Bitcoin was unable to recover despite weak inflation data, but the decline of Ethereum and altcoins may have been predictable.”
US$455 million settled
According to Coinglass data, recent price movements wiped out $455 million worth of all assets of over 172,000 cryptocurrency traders in the last day. Long traders lost $393 million, while short traders saw $62 million liquidated.
Ethereum speculators faced significant losses, representing approximately $92 million, or 20% of total losses. ETH traders who bet on price increases lost $75 million, while $16 million was liquidated from short position holders.
On the other hand, Bitcoin recorded $47.43 million in long liquidations and $22.71 million in short liquidations. Large-cap cryptocurrencies like Solana, XRPIt is Dogecoin also faced notable liquidations, worth $18 million, $4 million, and $60 million, respectively.
Cryptocurrency traders using the Binance platform were responsible for more than 37% of total market losses, totaling $170 million in the last day. The most significant single liquidation was a $6.64 million ETH long position.