Crypto armageddon: Bitcoin sinks below $58K

Bitcoin and the altcoin market witnessed steep declines during Asian trading hours, reversing earlier in the week’s gains. Bitcoin dropped from nearly $61K to about $57.8K shortly after Asian markets opened, with losses of up to 11% on Solana’s SOL and Dogecoin

The devastation left the total market capitalization for virtual currencies at $2.17 trillion; nonetheless, daily trading volumes have increased by 60% in the past day, despite the deteriorating indicators.  Meme coins like Pepe and Floki seem to be the greatest losers

Even if there is growing interest in Ethereum spot ETFs, Ethereum is down nearly double digits this week. Ethereum spot ETFs might start trading by mid-July. Concerns of significant Bitcoin sales from the now-defunct Mt. Gox exchange, scheduled to release money taken in a 2014 hack later this month, contributed to the high selling pressure.

After years of delayed deadlines, Mt. Gox will begin distributing money taken from clients in a 2014 attack in July 2024. As previously reported, the reimbursements would be done in bitcoin and bitcoin cash, which may put more selling pressure on both markets.

On the other hand, other traders’ long-term bullish outlooks are still intact, with forecasts of a $150,000 surge following the completion of the Mt. Gox payout. Geopolitical unrest, the impending November U.S. presidential election, and ongoing concerns about U.S. monetary policy are all expected to affect the price of the leading cryptocurrency in 2024.

112,263 traders were liquidated in the last 24 hours, for a total liquidation value of $307.53 million. The greatest single liquidation order, worth $4 million, was placed on OKXETH-USD-SWAP.

Forcibly terminating a trader’s position in the crypto market is known as “crypto liquidation.” It happens when there is not enough margin to cover maintenance expenses or when a trader experiences large losses to the point that their margin account is unable to sustain their open positions.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
Related Articles
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments