Second-Largest Bitcoin (BTC) Price Collapse in History Just Happened, But…

Bitcoin's bearish momentum isn't slowing down as its price has continued to decline following Thursday's breakdown below the $60,000 support level.

Bitcoin (BTC) price has continued to decline following Thursday’s breakdown below the $60,000 support level. Now, on-chain data reveals that this recent BTC sell-off is the second-largest liquidation event in Bitcoin’s history.

According to on-chain analytics firm WhaleWire, the only event that resulted in a larger liquidation than the current sell-off was the dip that followed FTX exchange filing for bankruptcy in November 2022.

This on-chain development comes as Germany is reportedly preparing to sell about $3.5 billion in seized Bitcoin and Mt. Gox begins repaying about $8.5 billion to its creditors.

Several key factors have contributed to this massive liquidation event, including a correction in the market that is typically observed during bull rallies and the anticipation of the upcoming launch of a spot Ethereum (ETH) ETF.

Despite the price drop, it’s important to note that such corrections are very common during bull markets. Bitcoin and the overall crypto market have previously recovered from major price dumps.

The general market has hope for the upcoming launch of spot Ethereum ETF, as it is expected to bring more capital into ETH and other altcoins. This could change the whole bearish sentiment quickly.

According to Bloomberg, the ETF could start trading around July 15. Many other analysts suggest we could see the ETFs this month or in August, which could make the market recover, just like it happened with Bitcoin ETF approvals.

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