Key Points
- Bitcoin’s price decrease to $64,000 resulted in daily liquidations exceeding $210 million.
- Bitcoin ETF traders are seeking safety due to the crypto market’s volatility.
Bitcoin’s price recently fell to $64,000, causing a stir in the crypto market. This decline came after Bitcoin had managed to maintain its position above $66,000 for several days, even briefly touching the $67,000 mark after the halving on April 20, 2024. However, resistance was met, leading to a subsequent decline.
According to data from CoinGlass, this downturn has put pressure on bullish investors and traders with over-leveraged long positions. As a result, daily liquidations have spiked to over $210 million.
Impact of Bitcoin’s Price Drop
In the last 24 hours, nearly 91,704 leveraged positions have been liquidated in the crypto market. Long traders were the hardest hit, with $178 million liquidated across several layer-1 blockchains, including Ethereum (ETH) and Solana (SOL).
Short traders also experienced losses, with more than $32 million liquidated during the same period, according to CoinGlass data. The OKX crypto exchange had the largest share of liquidations, amounting to a total of $5.66 million.
In just the last hour, both long and short traders collectively suffered losses of $132.28 million. Currently, the entire crypto market capitalization is at $2.37 trillion, indicating a 3.97% decrease over the past 24 hours.
Effect on the Broader Crypto Market
Bitcoin’s drop to $64,000 had a significant impact on the overall market, particularly altcoins, which experienced larger drops than Bitcoin.
In the last 24 hours, Solana (SOL) fell by over 7%, currently trading around $146 per token. Similarly, other altcoins such as Toncoin (TON), Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Bitcoin Cash (BCH) also experienced significant declines of 7%, 6.35%, 9.91%, 7.5%, and 6.07%, respectively.
Even memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) were not spared, facing drops of 7.20% and 8.38%, respectively, during this period.
Bitcoin ETF Traders React
Following the turmoil in the crypto market, Bitcoin ETF traders are looking for safety and selling off their holdings. According to data from SoSoValue, Grayscale’s ETF GBTC saw a significant net outflow of $130 million within a single day.
Despite the massive outflow from Grayscale, Fidelity’s ETF FBTC recorded a substantial inflow of $5.61 million in the same period. This figure represents the highest inflow among Bitcoin spot ETFs in the United States.
Similarly, ETFs like ARKB by Ark Invest and 21Shares also saw notable net inflows of $4.17 million within a day.
