Markets
Bitcoin hovers at $57,000 as liquidations hit $295 million
Photo by Bastian Riccardi on Unsplash.
Key points to remember
- Bitcoin and Ether have seen significant liquidations, totaling over $295 million in the past 24 hours.
- Despite the market declines, the options market remains optimistic about future Ether price increases.
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Bitcoin has fallen below $60,000 amid intense selling pressure, recently hitting a low of around $57,800. This selloff has triggered over $77 million in long position liquidations on centralized exchanges over the past 24 hours, contributing to a total of $295 million in market-wide liquidations.
The broader cryptocurrency market suffered substantial losses, with Ether, the second-largest cryptocurrency, facing over $71 million in liquidations, including $62 million in long positions. SOL and Solana’s Dogecoin (DOGE) were the biggest losers among major tokens.
Looming fears sales pressure of the deceased Mount Gox Exchanges and potential miner sales have contributed to the market decline. Mt. Gox is expected to begin distributing assets stolen from its customers in a 2014 hack in July 2024, which could add selling pressure to Bitcoin and peripheral crypto markets.
According to a clearance heat map According to CoinGlass, Bitcoin (BTC) and Ethereum (ETH) are leading the way with $92 million and $72 million in liquidations, respectively, followed by smaller amounts for other cryptocurrencies in the past 24 hours. The map visualizes the concentration and magnitude of liquidations across different digital assets. The top liquidations are on Binance, OKX, and Huobi.
Trading firm QCP Capital expects a subdued market in the coming quarter due to uncertainty surrounding the release of Mt. Gox’s bitcoin offering.
“We expect a subdued third quarter for BTC as the market remains uncertain about the supply coming from the Mt. Gox exit,” QCP said in a Thursday Telegram broadcast.
Despite the recent decline, derivatives traders are positioning for higher prices in the coming months, particularly for Ether. Analysts at QCP Capital noted that “the options market remains bullish as we continue to see strong interest in Ether call options for the September and December expirations.”
The market downturn has also highlighted signs of miner capitulation. According to another report from CryptoQuant, total daily miner revenue has dropped from $79 million on March 6 to $29 million currently, indicating that miners have been underpaid since at least April of this year.
As the cryptocurrency market grapples with these challenges, traders and investors remain focused on potential catalysts for a price reversal, including the possibility of a Ethereum Spot ETFs Approved Finally launch mid-Julycompounded by historical patterns associated with miner capitulation.
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