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BTC Liquidations Cross $193 Million as the Asset’s Price Plunges

Summary:
BTC’s price plunged to prices unrecorded since May, falling below ,000 on July 4 to go as low as ,300. That movement caused over 3 million in leveraged BTC contracts to get liquidated in the past 24 hours, CoinGlass data revealed. Out of that, 4 million in longs, or contracts betting on BTC’s upward price movements, and .06 million in shorts, contracts betting on the asset’s downtrends, were liquidated. The liquidations occurred due to BTC prices dropping close to the ,000 mark three days after it rallied to about ,000 on July 1. Now, worries exist that BTC may go as low as ,000, which many analysts believe will happen. Regardless, BTC ETF participants did not let panic take over and liquidate their holdings. As BTC prices dropped a few days ago, net BTC ETF

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BTC’s price plunged to prices unrecorded since May, falling below $57,000 on July 4 to go as low as $55,300. That movement caused over $193 million in leveraged BTC contracts to get liquidated in the past 24 hours, CoinGlass data revealed. Out of that, $154 million in longs, or contracts betting on BTC’s upward price movements, and $39.06 million in shorts, contracts betting on the asset’s downtrends, were liquidated.

The liquidations occurred due to BTC prices dropping close to the $55,000 mark three days after it rallied to about $62,000 on July 1. Now, worries exist that BTC may go as low as $50,000, which many analysts believe will happen. Regardless, BTC ETF participants did not let panic take over and liquidate their holdings.

As BTC prices dropped a few days ago, net BTC ETF outflows only accounted for $20.45 million on July 3, unlike the hundreds of millions liquidated in the latter weeks of June. That does not mean it may not occur—most investors will return to their desks after the July 4 Independence Day holiday and can mass exit their positions then.

Unless BTC’s price tracks upward again, BTC ETF investors may just do that. Currently, a lot of selling pressure exists with BTC because of the imminent Mt. Gox repayments expected to occur this month. BTC is dropping in value massively due to the anticipation of the repayments, which will release 140,000 bitcoins worth $9.4 billion. Mt. Gox conducted test transfers of just $25, sending the market into panic mode.

The German government-associated wallet selling thousands of BTCs is not helping either. As it sells thousands of BTCs, other holders will inevitably liquidate their holdings to take profits, leading to dipping asset prices. However, analysts believe BTC will make its way up after sliding to the $50,000 mark.

Image by A. Debus from Pixabay

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