Bitcoin can’t seem to depart the $60,000 price level because it continues to trade in uncertainty. On Saturday, August 3, the cryptocurrency experienced one other sharp decline, briefly dipping below the $60,000 mark.
Although this drop lasted only a number of minutes, it was quite significant, especially provided that Bitcoin had traded above $62,000 earlier the identical day. This fluctuation has notably impacted market participants, resulting in the liquidation of various long positions.
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On the time of writing, over $197 million value of leveraged positions have been liquidated prior to now 24 hours. Notably, this figure soared to as much as $288 million throughout the peak of the selling pressure.
Bitcoin And Market Liquidations
The persistent inability of Bitcoin to keep up a stable position above $60,000 highlights the uncertainty and speculative nature of the cryptocurrency market. Traders and investors remain cautious, closely monitoring its price movements.
This cautious approach has likely been amplified by recent reports of repayments initiated by the bankrupt crypto lender Genesis Global Capital, which flooded the market with additional digital assets, primarily Bitcoin and Ethereum.
Considering Bitcoin and Ethereum’s dominance over the market, this cautious approach has inadvertently led to a lingering bearish sentiment surrounding other cryptocurrencies. Although Bitcoin and Ethereum experienced the very best liquidated positions, the impact has spilt over into other digital assets.
In accordance with Coinglass data shown below, Ethereum led the market with $57.22 million value of leveraged positions liquidated. Bitcoin followed closely with $46.19 million in liquidations and Solana with $15.35 million.
Total crypto market cap currently at $2.1 trillion. Chart: TradingView
The full liquidation amount reached $197.72 million, with the bulk ($159.88 million) in long positions. Most of those liquidations occurred on Binance, OKX, and Bybit, with $85.88 million, $65.83 million, and $16.47 million in liquidations, respectively, each exhibiting an 80% long liquidation rate.
Prevailing Bearishness
The crypto industry is not any stranger to sporadic liquidations of such huge amounts. Considering the prevailing short-term bearish sentiment, most of those liquidations have repeatedly been on long positions. On June 24, the market witnessed almost $300 million value of positions liquidated in under 24 hours. Similarly, over $360 million value of positions were liquidated on June 7 when the Bitcoin price crashed from $71,000 to $68,000.
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Recent market dynamics suggest that the industry won’t be out of the woods yet concerning such liquidations. Bitcoin continues to struggle to carry above $60,000, a trend that might persist in the approaching weeks. That is partly because Spot Bitcoin ETFs, which have historically been a catalyst for Bitcoin price surges, ended last week on a negative note. Specifically, they concluded Friday’s trading session with $237.4 million in outflows, the biggest each day outflow since May 1.
Featured image from The Michigan Every day, chart from TradingView