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Bitcoin Price Plunges, Triggering Liquidations
The price of Bitcoin took a significant dip on Tuesday afternoon, dropping to nearly $60,000 per coin. This sudden decline caused liquidations for traders who had taken positions betting on the price of the asset to increase.
Data from CoinGlass reveals that within the past 24 hours, more than $261 million in long positions for various cryptocurrencies have been liquidated. When factoring in short positions, the total amount of liquidations exceeds $324 million. In the last four hours alone, liquidations amounted to nearly $70 million, with $24.4 million of that belonging to Bitcoin positions.
Current Market Values
At present, the price of Bitcoin is hovering around $60,309, based on data from CoinGecko. However, data from crypto exchange Coinbase indicates that the price briefly dipped to $60,012. Ethereum has also experienced a decline, now valued at $2,985, reflecting a 6% drop over the last 24 hours. Bitcoin, on the other hand, has seen a daily decrease of just under 4%.
Derivatives and Market Trends
In the realm of derivatives, long positions refer to trades where investors anticipate an asset’s price to appreciate in the future. In March, Bitcoin reached a new all-time high of nearly $74,000, surpassing its previous high of $69,044 set in 2021. The surge in price was partly attributed to the introduction of spot Bitcoin exchange-traded funds (ETFs), which allowed new investors to access the asset. These ETFs were sanctioned by the U.S. Securities and Exchange Commission in January.
However, concerns about the Federal Reserve’s intention to maintain higher interest rates for an extended period, coupled with geopolitical tensions in the Middle East, have instigated apprehension among investors regarding riskier assets like cryptocurrencies. Consequently, the allure of the recently launched spot Bitcoin ETFs has diminished, resulting in investors liquidating their positions and contributing to the further decline in Bitcoin’s value.
It is crucial to note that the opinions and viewpoints presented in this analysis are solely intended for informational purposes and do not serve as financial, investment, or any form of professional advice.
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