Bitcoin Drops to Two-month Lows
03 Jul, 2024 ● Crypto News
The price of Bitcoin briefly dropped to $57,874 on Coinbase on July 4, marking the first time the asset has fallen below $58,000 in over two months.
Bitcoin has since stabilized, trading at $58,964 at the time of publication, but is still down 3.4% for the week, according to TradingView data.
Bitcoin’s decline coincides with the liquidation of millions of dollars worth of leveraged long positions, impacting traders who were expecting a price increase.
More than $54.9 million in Bitcoin long positions have been liquidated in the last 24 hours, based on data from CoinGlass.
Similarly, traders aiming for long exposure to Ether ahead of the anticipated mid-July launch of several spot Ether ETFs also experienced liquidations.
In total, $57.9 million in ETH long positions were liquidated in the last 24 hours.
Much of the blame for Bitcoin's broader price decline has been attributed to the defunct Japanese crypto exchange Mt. Gox, which is scheduled to begin repaying approximately $8.5 billion worth of BTC to its creditors starting in early July.
However, some analysts think the repayments might not have as severe an impact on Bitcoin as others predict.
Other major cryptocurrencies and altcoins also experienced sharp sell-offs during Bitcoin’s brief dip below $58,000.
Ether is down 4.5% at the time of writing, having briefly fallen to $3,145 during a sharp sell-off at 2:00 am UTC on July 4.
BNB is down 6% at the time of writing, dropping from $573 to $539.
Solana also lost much of its recent gains, declining 10.3% in the last 24 hours, from a weekly high of $154 to $136 at the time of publication.
Meanwhile, mentions of “buy the dip" have surged across social media in the past two days, with the phrase's usage doubling on Reddit, X, and 4Chan during this period.
Sources:
https://cointelegraph.com/news/bitcoin-price-falls-below-58k-first-time-two-months
https://www.tradingview.com/chart/aciYtngx/?symbol=COINBASE%3ABTCUSD
