Benzinga - In a recent development, Bitcoin, the world’s premier cryptocurrency, witnessed a substantial drop, leading to the liquidation of over $420 million in long positions within a span of 24 hours, as reported by CryptoNews on Tuesday.
Data from Coinglass reveals that 190,144 traders were liquidated, with total liquidations reaching $480.93 million. Out of this, $420 million were long positions. Major cryptocurrency exchanges such as Binance, OKX, and HTX witnessed approximately $372 million in long positions being liquidated.
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Bitcoin’s value plummeted to a low of $64,600 during the early Asian trading hours on Tuesday, but has since seen a slight recovery, trading above $65,700 at the time of writing. This sudden dip in Bitcoin’s value also resulted in a significant drop in altcoins, with Ethereum dipping nearly 4% in the same 24-hour period.
Other popular altcoins like Solana (SOL), Toncoin (TON), and Cardano (ADA) also saw significant drops, down 8%, 6%, and 8% respectively. Top meme coins, including Dogecoin (DOGE), Shiba Inu, PEPE, Dogwifhat, and Floki, experienced even steeper declines, with some down well over 10%.
The sudden dip in Bitcoin’s value and the subsequent liquidation of long positions highlight the volatile nature of the cryptocurrency market. This volatility can lead to significant losses for traders, particularly those who hold long positions.
Furthermore, the dip in Bitcoin’s value also had a domino effect on altcoins, causing them to plummet as well. This indicates the strong correlation between Bitcoin and other cryptocurrencies, suggesting that a dip in Bitcoin’s value can have a widespread impact on the entire cryptocurrency market.
Meanwhile, the Federal Reserve’s plan to cut rates only once in 2024, down from an earlier forecast of three, as it continues to monitor U.S. inflation rates, could potentially impact the cryptocurrency market. Lower interest rates often lead to higher inflation, which could drive more investors towards cryptocurrencies as a hedge against inflation.
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