Bitcoin Hits Monthly Low, Liquidations Peak Over $100 Million
Bitcoin saw a drop to its lowest price in almost a month, triggering a surge in liquidations exceeding $100 million in an hour and over $150 million in the last day. The current price of Bitcoin is $65,240, down by over 2% in a day and about 8% in a week, reaching a level last seen on May 16.
Key Insights on Liquidations and Price Movements
- A plunge in Bitcoin price led to liquidations exceeding $100 million in an hour and over $150 million in 24 hours.
- Long position liquidations accounted for a significant portion of the total liquidations.
- Bitcoin’s current price sits at $65,240, marking a 2% drop in a day and an 8% decline in a week.
Understanding Liquidations in Trading
- During liquidations, traders are compelled to close their positions at prevailing market rates to manage losses when their margin accounts can no longer sustain their positions.
- A long position signifies a belief that an asset’s value will rise, while a short position indicates a forecasted price drop.
Recent Trends in Bitcoin’s Price Movements
An earlier occurrence this week saw $245 million worth of crypto long positions liquidated before the release of the U.S. Bureau of Labor Statistics’ May report. Additionally, Bitcoin’s price faltered after the Federal Reserve maintained its interest rates for the eleventh consecutive month, hinting at a likely rate cut.
Comparative Analysis with Ethereum and Solana
- Ethereum’s current price stands at $3,398, reflecting a 1.7% decline in a day and a 10.1% fall in a week. Ethereum liquidations exceeded $30.1 million on Friday.
- Solana is trading at $141.33, witnessing a 4.1% dip in a day and a 16.2% decline in the last seven days. Liquidations of Solana long positions peaked at $11.5 million.
Hot Take: Impact of Bitcoin’s Price Drop on the Crypto Market
The recent price dip in Bitcoin causing a surge in liquidations exemplifies the volatile nature of the crypto market as investors navigate fluctuations in prices and positions across various cryptocurrencies.
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