Table of Contents
- Bitcoin dips below $61k, retracing from last week’s all-time high and triggering significant liquidations.
- Over $650 million in long positions were liquidated in the past 24 hours, highlighting market volatility.
- Major altcoins, including Ethereum, Solana, and Dogecoin, experience parallel price declines.
The crypto market has just experienced a sharp correction as the price of Bitcoin (BTC) continues its slow, downward slide, erasing some of its recent gains – which happened mainly over the last few weeks. The price of Bitcoin has now dipped below $61,000, triggering a wave of liquidations exceeding $600 million across the broader crypto landscape.
What Happened with BTC?
The rather abrupt correction – which has happened midweek – has reverberated across the broader cryptocurrency market. According to data from Glassnode, the crypto market crash has caused more than $650 million in total long liquidations over the past 24 hours.
Major altcoins like Ethereum (ETH), Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE) have also suffered substantial losses. This underscores the strong correlation between Bitcoin’s price movements and the overall sentiment in the ever-volatile crypto space.
There are many factors that might have contributed to today’s price dip – including the record daily outflows from the largest spot Bitcoin ETFs, as well as one-off sell events that caused other issues due to market liquidity conditions, like what happened with BitMEX. It should be noted that investigations on the above are currently ongoing and so far, no other crypto exchanges appear to be affected by the same issues.
In any case, this recent dip in Bitcoin’s price has caused concern among some investors, who have begun to worry that the bullish momentum might be fading. However, it’s important to remember that corrections are a natural part of market cycles.
Analysts are now closely watching key technical indicators and market reactions to determine whether this represents a temporary setback or a more significant trend reversal.
What’s Next for Crypto
The current crypto market “correction” – as described by experts – should server as a reminder of the inherent risks and potential for rapid price movements. While the long-term outlook remains a subject of debate, it’s crucial for investors to stay informed, maintain a balanced perspective, and make well-informed investment decisions.
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