Bitcoin Bitcoin
-4.38%
Long-term liquidations have surged over the past 24 hours as the price of the largest cryptocurrency by market cap fell below $67,000.
According to data from Coinglass, over $68 million in Bitcoin long liquidations were recorded on centralized exchanges over the past 24 hours, with total liquidated BTC positions totaling $75 million. The broader crypto market saw over $167 million in total liquidations over the same period, with long positions totaling around $143 million.
Traders of ETH, the second-largest cryptocurrency by market cap, also faced significant liquidations of leveraged positions on multiple exchanges, with more than $40 million liquidated, of which more than $33 million were long positions.
Liquidation occurs when a trader automatically liquidates a position because they do not have enough funds to maintain it, usually when the price moves sharply in a certain direction, depleting the initial margin or collateral.
US Government Silk Road Bitcoin Transfer
In addition to the residual from payments to creditors of the shuttered Mt. Gox cryptocurrency exchange, the recent decline came after a large amount of bitcoin was transferred from a wallet known to be owned by the U.S. government.
According to Arkham Intelligence data, $2 billion worth of Bitcoin was transferred from a wallet listed as belonging to the U.S. government to an unidentified wallet on Monday.
Nearly 28,000 BitcoinsThe funds, worth more than $2 billion, appear to be linked to funds seized by the U.S. Department of Justice from the now-defunct dark web marketplace Silk Road.
Potential bullish indicators for Bitcoin
According to The Block’s price page, Bitcoin is currently trading at $66,735, down nearly 4% over the past 24 hours. However, BRN Senior Analyst Valentin Fournier sees the recent price correction as a positive, saying, “This consolidation phase could provide a stronger foundation for a future rally.”
In an interview with The Block, Fournier cited macro catalysts that suggest further room for growth for bitcoin. “A confluence of bullish factors continues to support the cryptocurrency’s upward trajectory: anticipated rate cuts, increasing institutional adoption, increased interest in holding bitcoin as a reserve asset in developed markets, and a strong U.S. economy are all contributing to a favorable market environment,” he added.
According to Coingecko data, Bitcoin’s market dominance is 52.5%, while Ether’s dominance is 16%. The global cryptocurrency market cap has fallen by about 3.2% over the past day, currently standing at $2.51 trillion.
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