The value of Bitcoin has experienced a sharp decline, resulting in millions of dollars in liquidation as optimism surrounding crypto exchange-traded fund (ETF) applications weakens. On Tuesday, Bitcoin’s price dropped, breaking its five-week bullish streak and reaching as low as $34,970. This significant decline led to the liquidation of over $300 million in leveraged long positions, according to data from cryptocurrency futures trading and information platform CoinGlass. This marks the largest amount of liquidated longs in a 24-hour period since August 17. Liquidation occurs when an exchange closes a leveraged trading position due to a partial or total loss of the trader’s margin. Widespread liquidations can impact the volatility of the crypto asset as traders cover their positions.
The decline in Bitcoin’s value occurred at a time when the crypto market was experiencing optimistic investor confidence, driven by spot ETF applications, strong support from traditional finance institutions, and the release of the U.S. Federal Reserve’s Consumer Price Index (CPI) report. Crypto analyst Ali noted that Bitcoin whales began taking profits as the price climbed from $35,000 to nearly $38,000, with over 15 wallets holding more than 1,000 BTC either selling or redistributing their holdings.
As of 5:49 a.m. ET on Wednesday, Bitcoin was trading in the red zone at $35,829.54, representing a 1.99% dip over the past 24 hours and a 1.5% gain over the last seven days. Its total circulating supply stands at 19,542,800 BTC, with a market cap of $699,548,932,798.
This article is not considered breaking news and is not related to true crime or a police chase.
