- Over the weekend, the price of bitcoin fell even more—it has already dropped 7.7% in the last day. It crashed to a daily low of $61,384 per coin on Saturday, igniting a massive wave of leveraged liquidations.
- Amid market instability, the value of bitcoin declines; significant liquidations are reported.
Bitcoin’s (BTC) price dropped below the $62,000 barrier about 4:00 p.m. Eastern Time on Saturday after trading mostly in the $67,000 range during the morning. Within three hours, the cryptocurrency fell 7.7% as a result of a rush of panic sales that began at 1:00 p.m.
According to two-week data, the value of bitcoin has decreased 8.7% in relation to the US dollar, while trading volume increased to $41.63 billion throughout the course of the day.
The price leveled off at 4:15 p.m., cooling to hover just over $62,000 after multiple tries to break into the $63,000 zone.
Despite some recovery, Bitcoin lost $4,500 in value overall over a three-hour period. $167.13 million was lost in hourly liquidations from long Bitcoin holdings alone on Saturday, as the total amount liquidated across the cryptocurrency space approached $1 billion once more.
The total amount liquidated in 24 hours was $697.07 million, of which $598.91 million came from long holdings, as of 4:15.
Bears forced the price of bitcoin back below $62,000 by 4:25, which led to more leveraged liquidations. 219,299 merchants faced liquidation during the day.
This increase in selling pressure has the potential to drive down Bitcoin prices even further, accelerating the drop in a vicious cycle. Such quick sell-offs are frequently motivated more by gut feelings than by careful consideration, which encourages additional traders to sell off in an effort to reduce losses.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
