Minority Mindset

Smart investments

Crypto News

Bitcoin Nears $62K as Crypto Bulls See $150M in Liquidation

Jun 23, 2024
    Major tokens experienced a significant drop of up to 7.5% in the past 24 hours, with Bitcoin losing 3% and other major cryptocurrencies such as Ethereum, Cardano, and Solana also seeing declines.The decline led to the liquidation of over $150 million in bullish bets, attributed to factors including large sales from Bitcoin miners, the German government moving a significant amount of BTC to exchanges, and the broader market sentiment influenced by these movements.
As a crypto investor with some experience under my belt, I’ve seen my fair share of market fluctuations. However, the past 24 hours have been particularly challenging as major tokens, including Bitcoin, Ethereum, Cardano, and Solana, experienced significant drops of up to 7.5%. This decline led to over $150 million in bullish bets being liquidated.In the previous day, significant cryptocurrency tokens experienced a drop of up to 7.5%, resulting in Bitcoin (BTC)’s recent weekly advance being erased. This market shift led to approximately $150 million worth of bullish wagers being terminated during the weekend.
Bitcoin experienced a decrease of 3%, with comparable reductions for Ether (ETH), Cardano’s ADA, and BNB Chain’s BNB. Solana’s SOL saw a more significant decline of approximately 7% to hover around $120 during Monday morning trading. Dogecoin (DOGE) and Shiba Inu (SHIB) also dropped nearly 5%.

The CoinDesk 20 (CD20), which tracks major tokens minus stablecoins, slumped just over 4%.

Long positions, which are wagers on price increases, experienced over $150 million in forced closures. Conversely, the value of short positions, representing bets against price rises, decreased by only about $9 million. A liquidation occurs when a trading platform forcibly terminates a leveraged trade due to substantial or total loss of the trader’s initial deposit.

As a crypto investor, I’ve noticed some funds reporting substantial losses, which they attribute to two main factors in my perspective. Firstly, there were sizeable sell-offs from Bitcoin miners. These miners likely sold their BTC holdings in response to market conditions or perhaps due to financial necessities.

“According to QCP Capital, based in Singapore, mining professionals have faced significant incentives to dispose of their Bitcoin due to increased costs to mine following the halving event. As a result, the quantity of Bitcoin held by miners has reached a 14-year low, with a decrease of approximately 50,000 coins from the beginning of the year.”

“The market has been unsettled by the recent appearance of a significant amount of Bitcoin for sale. It’s been reported that the German government supposedly disposed of approximately 3,000 Bitcoins in the past few days, with around 47,000 more still to be offloaded.”

Previously announced, significant Bitcoin investors (referred to as “whales” due to their large holdings) disposed of more than a billion dollars’ worth of the cryptocurrency within the initial two weeks of June. Simultaneously, the German Federal Criminal Police Office (BKA), having seized nearly 50,000 BTC from a piracy site in 2013, initiated transfers valued in tens of millions to popular crypto exchanges like Coinbase and Kraken during the past week.

The price of bitcoin took a dip on Monday, worsening what has been one of its most challenging weeks this year. Factors contributing to this downturn include large-scale sell-offs totaling over $1 billion, a robust US dollar, and a surging technology market in the United States.

As a financial analyst, I have examined the recent trends in U.S.-listed Bitcoin Exchange-Traded Funds (ETFs). The data reveals that these funds experienced significant withdrawals to the tune of over one billion dollars during the previous week.

Read More

2024-06-24 10:07