Bitcoin slumps to its lowest price in a month and a half, causing almost $100 million in liquidations and impacting the broader cryptocurrency market.
Highlighting Points
- Bitcoin slumps below $29,000, hitting its lowest price in a month and a half, resulting in almost $100 million in liquidations.
- The cryptocurrency market experienced unusual calmness before the drop, with bitcoin trading in a tight range between $29,000 and $29,500.
- During the early Asian trading session on Tuesday, bitcoin’s price fell to $28,750, causing most altcoins to suffer a 3-5% decline.
- Over 35,000 traders were liquidated, with long positions accounting for 85% of the nearly $100 million worth of liquidations.
After several days of trading sideways, bitcoin finally made a move but not a positive one for the bulls. The cryptocurrency slumped below $29,000 to chart its lowest price tag in a month and a half, leaving almost $100 million in liquidations.
Bitcoin 3 month liquidation heatmap data shows 100+billion in 24.2-25k . pic.twitter.com/MZEUNxWI92
— CRYPTO GEM 💎 (@CryptoG89911056) July 22, 2023
Bitcoin’s Unusual Calm Disrupts
As CryptoPotato reported yesterday, bitcoin, and for that matter the rest of the market, had remained calm for several consecutive days, something rather untypical for the volatile crypto space. The primary cryptocurrency stood in a tight range between $29,000 and $29,500, and the former served as its resistance line.
However, the landscape changed during the early Asian trading session on Tuesday. Bitcoin slumped by almost a grand from well above $29,000 to $28,750 (on Bitstamp). This became its lowest price tag since June 21.
Despite recovering a few hundred dollars since then, BTC is still well in the red now. Likewise, most altcoins have also suffered. Dogecoin, Solana, Litecoin, Bitcoin Cash, Avalanche, Polygon, and Stellar have all declined by somewhere between 3-5% in a day.
Concluding Thoughts
Somewhat expectedly, this volatility has harmed over-leveraged traders, especially those with long positions. Data from CoinGlass shows that the total value of liquidations for the past 24 hours has risen to just shy of $100 million. Naturally, long positions are responsible for the lion’s share (85%) of that amount. In total, more than 35,000 traders have been liquidated, and the single largest order took place on Bybit and was worth over $1 million.
