Markets
Cryptocurrency markets are bleeding due to massive liquidations
BTC fell to $58,000 amid fears that the German government is looking to sell billions of Bitcoins.
Cryptocurrency markets bled Thursday morning as leveraged traders were liquidated en masse.
Bitcoin fell 5% to $57,350, while Ethereum fell by 3.5%. Solana And Peas also decreased by 5%.
Almost all of the top 100 digital assets by market cap have recorded losses over the past 24 hours, with the exception of Mantra (MANTRA), which is up 11%.
The continued decline stems from renewed concerns about the German government selling its Bitcoin reserves.
Arkham Intelligence reported German authorities have transferred approximately $75 million in bitcoin to Bitstamp, Coinbase, and Kraken, making it one of the largest bitcoin transfers made by the German government to date.
Justin Sun, the founder of Tron, has propose the purchase of the German government’s Bitcoin holdings, valued at more than $2.3 billion, in an off-market deal to minimize the impact on the cryptocurrency market.
Michael Van de Poppe, CEO of MN Trading, believes Bitcoin will test the May 1 low at $56,000. “The altcoin depression and capitulation is happening,” he said. tweeted.
According to CoinGlassOver 132,000 traders have been liquidated in the past 24 hours, totaling $381 million. Liquidations occur when traders’ positions are automatically closed due to insufficient funds to cover losses. The largest liquidation order was made on Binance in the ETH-USDT pair, worth $18.5 million.
Meanwhile, US stock markets remained closed for Independence Day.