The bitcoin (BTC) price has fallen sharply below $67,000 on this Tuesday after Easter. That has led to more than $500 million in liquidations on the futures market.
Bitcoin price drops, $500 million goes up in smoke
Data from CoinGlass shows that in the last 24 hours the crypto market has seen a significant amount of liquidations. The total liquidation amount reached a bizarre $500.45 million at one point, but at the time of writing the amount is lower.
It is notable that the majority of these liquidations, approximately 84.19%, were long positions. Among all crypto exchanges, Binance and OKX saw the largest liquidations, with $202.84 million and $176.48 million respectively.
One of the reasons the price is falling is simply profit taking from bitcoin holders.
A few of these folks have actually started taking profit, with the $73k peak aligning exactly with a cycle high Profit event of +352k $BTC
Profit taking is a normal part of #Bitcoin bulls, but it is a key factor in establishing resistance at local tops. https://t.co/5CHKWQHXTx pic.twitter.com/aqOcoJYcgJ
— _Checkonchain (@_checkonchain) April 2, 2024
Also notable is the remarkable outflow from Bitcoin ETFs, amounting to $85 million, according to figures from Farside. The Grayscale Bitcoin Trust (GBTC) is contributing significantly to these outflows, with $302.6 million flowing out of the fund. GBTC has achieved year-to-date outflows of $15.07 billion. This is in stark contrast to the positive cumulative flows of other SEC-approved spot Bitcoin ETFs.
Crypto analyst Jason Pizzino warns that the bitcoin price may continue to decline based on recent market performance. “Watch for the emotional fireworks as Bitcoin breaks below $68,300 and expect many altcoins to continue falling against BTC pairs at this point,” Pizzino said.
Crypto and Bitcoin are coming to life again after a week of grind. Watch the emotional fireworks if #Bitcoin breaks $68,300 and for many altcoins to continue grinding lower vs #BTC pairs atm.
This bull ride isn’t over yet – just a tough shakeout or two for the newbies. 🐂 pic.twitter.com/oosjaScql5
— Jason Pizzino 🌞 (@jasonpizzino) April 1, 2024
So, according to Pizzino, there is a chance of a broader market correction, as bitcoin’s price action often impacts other cryptocurrencies. Indeed, the total crypto market has fallen to $2.63 trillion, representing a decline of 6.1% in the last 24 hours.
Specifically, Ethereum (ETH) has seen a decline of 6.4% in the last 24 hours. Likewise, Solana (SOL) has experienced a sharper 9.2% decline in its value. The memecoin category saw even bigger declines. During the same period, Dogwifhat (WIF) was down 12.8%, and PEPE was down 15%.
Source: https://bitcoinmagazine.nl/nieuws/bitcoin-btc-daalt-onder-de-67-000-veroorzaakt-500-miljoen-aan-liquidaties
