Bitcoin Price Plunges, Liquidations Worth Millions
The price of Bitcoin plunged to nearly $60,000 per coin on Tuesday afternoon, prompting liquidations for the positions of those betting on the price of the asset to go up. CoinGlass data shows that in the past 24 hours, over $261 million in long positions for all cryptocurrencies have been liquidated, with total liquidations standing at over $324 million including short positions. In the past four hours alone, the figure stands at nearly $70 million, with $24.4 million of that in Bitcoin positions. Currently, the price of Bitcoin sits at $60,309 per data from CoinGecko, though crypto exchange Coinbase shows that it dipped as low as $60,012 not long ago. Ethereum, meanwhile, is down to $2,985 as of this writing, down 6% over the past 24 hours, with Bitcoin’s daily dip standing at just under 4% as of this writing.
Derivatives Trading and Market Speculation
- Long positions in derivatives are held by traders who bet that the price of an asset will go up in the future.
- Bitcoin hit a new all-time high of nearly $74,000 in March, surpassing its previous all-time high of $69,044 set in 2021.
Factors Influencing the Market
- New investors gained exposure to Bitcoin through spot Bitcoin exchange-traded funds (ETFs) approved by the U.S. SEC in January.
- Concerns over the Federal Reserve maintaining higher interest rates and geopolitical tensions in the Middle East are driving investors away from risk assets like cryptocurrencies.
- The popularity of spot Bitcoin ETFs has waned since their launch, leading investors to cash out of these vehicles and contributing to the decline in Bitcoin’s price.
Hot Take: Evaluate Your Investment Strategy
It is essential to assess market conditions and potential risks before making investment decisions. Be cautious and monitor trends to make informed choices. Remember that the cryptocurrency market is volatile, and prices can fluctuate rapidly based on various factors. Stay informed and stay vigilant to navigate the crypto landscape successfully.
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