Bitcoin (BTC) Price Drops 6% in 24 Hours, Extending a Downward Trend

Bitcoin continues to experience significant volatility, extending a downward trend that began last month.

Bitcoin’s price continues to experience significant volatility, extending a downward trend that began last month.

According to CryptoSlate’s data, Bitcoin’s price has dropped approximately 6% in the past 24 hours, breaking the $58,000 mark to fall as low as $56,900.

Some observers attribute the price drop to low market liquidity and concerns over the impending Mt. Gox BTC payout, which will distribute about $9 billion worth of Bitcoin to creditors. Some speculate that this event could lead to a sell-off among early BTC recipients.

Meanwhile, crypto exchange BloFin also issued a research note warning of high downside risk for Bitcoin, mainly if an unexpected event occurs.

Some traders are liquidating their holdings due to the downturn, resulting in over 110,000 traders losing around $310 million in the last 24 hours, mostly stemming from long traders.

Bitcoin traders bore the brunt, incurring $94 million in losses—$82 million from long trades and $12 million from short trades. Ethereum was not far behind, with liquidations reaching around $72 million.

The largest single liquidation took place on HTX (formerly Huobi), involving a $10 million long position on the top crypto asset.

Mentioned in this article

Oluwapelumi Adejumo

Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.

Liam 'Akiba' Wright

Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

Discover the power of tracking crypto whales for smarter trading: Margex Research

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