Bitcoin is having a rough time lately. The cryptocurrency has plunged by 2.5% against the U.S. dollar in just the past 24 hours, and it’s down 5.8% over the past week. The top cryptocurrency dropped to a low of $55,602, and as of Wednesday morning, it was barely above $57,400.
This latest decline has had a ripple effect on the entire crypto market. The total market value fell below $2 trillion for the first time in a while, now sitting at $1.98 trillion. The drop in Bitcoin’s value has triggered a significant increase in trading volume—up by 36% in the past day. In total, $70.23 billion was traded, with Bitcoin accounting for $33.79 billion of that. South Korean exchanges Upbit and Bithumb saw Bitcoin prices peak at $57,172 due to a local premium.
The pain didn’t stop there. Nearly 67,000 crypto traders faced liquidations, with a substantial $169.04 million in crypto derivatives positions wiped out. Bitcoin long positions alone contributed $36.3 million to this figure. The liquidations have spread across various cryptocurrencies, with Ethereum long positions also experiencing a notable $28.75 million in losses.
Crypto traders, brace yourselves. This sharp decline in Bitcoin’s value and the subsequent market dip could signal more volatility ahead. What do you think this means for the future of Bitcoin and the broader crypto market?
