The cryptocurrency market has experienced significant volatility in the past day, resulting in over $152 million in liquidations. In total, the market has seen $290 million in liquidations during this time, with the majority ($154 million) coming from long positions.
Bitcoin, the largest digital asset, saw liquidations of over $108 million as it briefly dropped below the $60,000 mark before rebounding. It is currently struggling to maintain its position above $64,000. According to Coinglass data, liquidations were almost evenly split between long and short positions, totaling $54 million and $53 million respectively.
As of 5:22 a.m. ET, Bitcoin was trading at $64,739, representing a 5.3% increase in the past 24 hours. The wider cryptocurrency market also saw positive movement, with the GM 30 Index (which tracks the top 30 cryptocurrencies) rising by 4.46% to 129.97.
The upcoming halving event for Bitcoin, where the miners’ block subsidy reward will be halved, is less than 100 blocks away according to The Block’s halving countdown. Analysts from 21Shares believe that Bitcoin may continue to trade sideways until geopolitical concerns, such as conflicts in the Middle East, stabilize. Once this happens, they anticipate that Bitcoin will resume its upward trend post-halving. This is expected to be supported by increasing institutional interest in digital assets, particularly from U.S. spots and recently approved Hong Kong ETFs.
Macro factors, such as heightened geopolitical tensions, have a significant impact on short-term crypto activity according to Coinbase analyst David Han. He noted that even altcoins have a high correlation with Bitcoin, highlighting its role as a macro asset. This was stated in this week’s Coinbase Monthly Outlook report.
Please note that the featured image is from Freepik and the information provided is subject to our disclaimer.
