TL;DR
- Bitcoin falls below $64,000, resulting in over $440 million in futures liquidations.
- Significant losses also affect other Cryptocurrency like Ethereum, Solana, and Dogecoin.
- Some traders expect Bitcoin to fall further, possibly to $55,000, though they maintain a long-term bullish outlook.
The cryptocurrency market has been shaken by a significant drop in the price of Bitcoin, which fell below $64,000.
This decline has resulted in considerable losses for futures traders, with over $440 million in liquidations recorded on major exchanges like Binance and OKX, according CoinGlass.
Bitcoin’s decline has also impacted other major cryptocurrencies, including Ethereum, Solana, and Dogecoin, all of which suffered significant losses.
This market volatility has led to some pessimistic projections, with some traders anticipating that Bitcoin could fall further, possibly reaching $55,000 in the short term.
Bitcoin’s decline coincided with a record outflow of funds from Grayscale’s GBTC, with over $640 million withdrawn. Although there were inflows into other products, the net outflow from the market was $15 million on Monday.
The drop in prices of major cryptocurrency has raised concerns among traders
In particular, this pertains to traders who are actively involved in managing leveraged positions, where they utilize borrowed funds to amplify their trading activities and potential returns.
Liquidations occur when traders cannot meet the margin requirements to keep their leveraged positions open, resulting in exchanges forcibly closing these positions.
Despite short-term concerns, some traders maintain a long-term bullish outlook for Bitcoin.
For example, John Glover, Chief Investment Officer at Ledn, acknowledges the difficulty of predicting when the correction will be completed but expects Bitcoin to reach levels between $55,000 and $62,000 before starting a new bullish phase.
Glover also points out the increasing participation of retail investors in Bitcoin ETFs and anticipates further interest coinciding with the halving, which could lead to interesting developments in the market in the next month or so.
