Bitcoin falls below 58,000, cryptocurrency bulls face $230 million liquidation

In the past 24 hours, the total market value of the crypto market has dropped by $91 billion. After Bitcoin experienced a 12-hour long-short game at $60,000, the sell-off began at 9 a.m. today shortly after the opening of the Tokyo stock market. Bitcoin began to fall below $58,000 for a short time, once again hitting the low of a week ago. A 24-hour drop of 5.72%,

As of the time of writing, Bitcoin has fallen to around $57,600. With Bitcoin so weak right now, major tokens are also starting to fall. Ethereum (ETH) fell 4%, while Solana’s SOL and Dogecoin (DOGE) fell as much as 8%. The crypto market liquidated nearly $100 million in one hour, accounting for half of the total in the past 12 hours.

Liquidation data tracked by CoinGlass shows that futures trades betting on higher prices lost more than $230 million in the past 24 hours. Futures tracking BTC and ETH each saw over $60 million in long liquidations, while products tracking DOGE, SOL, XRP and pepe coin (PEPE) recorded losses of at least $4 million.

For long traders, these liquidations are the highest since late June. The well-known cryptocurrency exchange’s liquidation amount even exceeded $110 million, the most among its peers. Although the market downturn has lasted for a month, the crypto community has accepted that this is the "bottom of a long correction" stage. Bitcoin volatility is close to a new low since February, but the continued decline signal still exists.

Bitcoin spot ETF is an important reference for judging market direction. According to data from Farside Investors, Bitcoin ETF has had net outflows for two consecutive days, with a total outflow of US$34.2 million in two days.

In addition, The lack of new funds entering the market is also an important reason why the market cannot meet market expectations.

The total market value of stablecoins in the crypto market has been growing steadily since the middle of last year, corresponding to the fact that the market at that time also continued to rise, and the signal from bear to bull was obvious. But since the beginning of May, no new money has entered the crypto market, and the market value of stablecoins has been hovering around US$160 billion for more than two months. With insufficient liquidity on the market, there is no buying power to drive the market up.

A week later, Bitcoin fell to 58,000 again. Is it a correction or the end of the bull market? Market views are mixed. According to the analysis of crypto KOL, the price of Bitcoin is being artificially lowered, and retail investors and investment managers are tempted to sell as a hedge through deceptive selling orders from giant whales.

A report published by CryptoQuant states that for most of the three months since the halving, Bitcoin miners’ transaction fee revenue has dropped to just 3.2% of total daily revenue, which is three months. lowest share since. After insufficient incentives, miners began to shut down underperforming equipment one after another and began to sell Bitcoin to hedge risks, which historically usually means that Bitcoin will see a bottom signal.

But there are also various signals pointing to Bitcoin’s possible continued decline. Judging from the net flow of Bitcoin ETFs, Markus Thielen, founder of 10x Research, said in his latest report that it is estimated that the average entry of Bitcoin ETF buyers Prices range from US$60,000 to US$61,000. Therefore, when Bitcoin fell below $60,000 yesterday, it may have triggered a wave of ETF liquidations, further driving down the price of Bitcoin.

For example, Markus Thielen believes that Bitcoin’s weekly and monthly reversal indicators indicate a broader correction, and its price may further correct to $55,000. Andrew Kang, co-founder of crypto venture capital firm Mechanism Capital, sees an even lower bottom and believes Bitcoin could see an extreme correction to the $40,000 range.

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