🔥Early Access List: Land A High Paying Web3 Job In 90 Days LEARN MORE

Bitcoin dip causes liquidation of $256 million worth of long positions

In this post:

  • Bitcoin has experienced a slight dip of 7% leading to the liquidation of $256 million worth of long positions.
  • Impact of Market sentiment on the crypto market.

The leading cryptocurrency Bitcoin has experienced a price drop of 7%. As a result of this drop, traders with long positions have lost over $256 million. Despite the losses, analysts believe there is nothing to be afraid of amid the current tension in the Middle East. Equally, analysts have noted that this is a ‘normal drop’ for Bitcoin.

Bitcoin dip causes long positions liquidation

Reacting to the recent news, Benjamin Cowan said on X that this drop is normal. He added that there have been several dips of about 20-22% in this cycle in the past.

Microstrategy CEO Michael Saylor also talked about the development. He noted that the chaos is good for the performance of BTC.

However, crypto trader Rekt Capital opined that BTC will likely resume its uptrend soon while noting that it has to experience a short-term drop. “Bitcoin will retrace deep enough to convince you that the Bull Market is over,” Rekt said on X. Bitcoin experienced a crash to trade at $60,919 before coming back to find support around the $62,000 mark.

See also  Crypto startups now getting overlooked by VC firms for funding

Impact of Market sentiment on the crypto market

According to CoinMarketCap data, BTC is presently trading at $63,858. The recent price drop came with implications as over $319 million in leveraged positions have been liquidated in the last 24 hours. According to CoinGlass, the liquidations involved $62.5 million in short positions and about $256 million in long positions.

With BTC still experiencing volatility, traders are anticipating the worst. If Bitcoin returns to its previous price of $67,000, over $1 billion in shorts would face liquidation. The issue is not only affecting traders in the Bitcoin market with the entire market registering a loss of over $959 million in liquidations with about 253,554 traders affected.

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Related News

Cryptopolitan
Subscribe to CryptoPolitan

Interested in launching your Web3 career and landing a high-paying job in 90 days?

Leading industry experts show you how with this brand new course: Crypto Career Launchpad

Join the early access list below and be the first to know when the course opens its doors. You’ll also save $100’s off the regular launch price.