Bitcoin Dips to $62K Amid $150M Liquidations

Bitcoin Dips 62K
Bitcoin (BTC) has dropped towards $62,000, erasing last week’s gains and resulting in over $150 million in bullish positions being liquidated over the weekend. Major cryptocurrencies have also experienced declines in the past 24 hours, with some tokens falling by as much as 7.5%.

Bitcoin fell by 3%, while ether (ETH), Cardano’s ADA, and BNB Chain’s BNB also saw similar losses. Solana’s SOL dropped by 7%, reaching almost $120 on Monday morning. Meme coins like dogecoin (DOGE) and shiba inu (SHIB) decreased by nearly 5%. The CoinDesk 20 (CD20), which tracks major tokens except stablecoins, fell by just over 4%.

The downturn triggered over $150 million in long positions, or bets on price increases, to be liquidated. Short positions, or bets on price declines, saw relatively smaller losses of $9 million. Liquidation happens when an exchange forcefully closes a trader’s leveraged position due to a significant loss of the trader’s initial margin.

Some analysts attributed the losses to significant Bitcoin sales by miners and the movement of a substantial amount of BTC to exchanges by the German government. According to Singapore-based QCP Capital, miners are pressured to sell due to increased breakeven prices following the halving. Miner BTC holdings are at their lowest level in 14 years, with total reserves down by 50,000 since the start of the year.”

The market is also concerned about a new large supply of Bitcoin. The German government reportedly sold around 3,000 BTC recently and plans to sell another 47,000. Bitcoin whales, or entities with large BTC holdings, have sold over $1 billion worth of BTC in the first two weeks of June.

The German Federal Criminal Police Office (BKA), which seized almost 50,000 BTC from a piracy site in 2013, began moving large amounts of BTC to exchanges like Coinbase and Kraken last week.

Monday’s decline adds to one of Bitcoin’s worst weeks this year. BTC prices have been falling in recent weeks due to $1 billion in sales from large holders, a stronger dollar, and a robust U.S. technology index market. U.S.-listed Bitcoin exchange-traded funds (ETFs) also saw over $1 billion in net outflows last week, according to data.

Also Read: VanEck Proposes 0.20% Fee for Spot Ethereum ETF

Leave a Reply

Your email address will not be published. Required fields are marked *