The global crypto market recorded a major sell off on Monday Bitcoin (BTC), the biggest digital asset price dropped by more than 5% over the past day. The cumulative market cap dropped by around 4% in the last 24 hours to stand at $1.58 trillion. However, the recent slide in the market triggered a massive amount of liquidations.
Crypto market sees $400 mln liquidation
As per the Coinglass data, more than 119K traders were liquidated in the last 24 hours. The total liquidations recorded by the tracker breached the $400 million mark. The largest single liquidation order happened on the crypto exchange OKX of BTC-USDT-SWAP valued at $8.23 million.
As we dig in, data depicts that out of massive $409 million liquidations, 89% (approx worth $354 million) of the liquidated bets were long positions. This suggests that the traders were expecting a positive market approach from here or a continued upward rally.
Bitcoin recorded the most of the liquidations over the last 24 hours. According to the data, BTC saw a total of $104 million of liquidation. However, $91 million worth of liquidated bets turned out to be long positions. The traders were betting on a Bitcoin price to breach the $45k level next.
Meanwhile, BTC price dropped by around 5% in the last 24 hours. Bitcoin price went down to touch the $41,600 price level, earlier.
BTC is on a roll
Bitcoin has registered an impressive surge in the year 2023. BTC price is up by almost 160% this year. Bitcoin’s upward run is driven by expectations of regulators approving the first US exchange-traded funds. This could potentially broaden the base of crypto investors. However, optimism around the potential interest rate cuts by the Federal Reserve in 2024 has also added to the rally.
According to the Bloomberg report, Tony Sycamore, a market analyst at IG Australia Pty, suggested that the decline in Bitcoin prices could be associated with profit-taking. He is anticipating support in the $37,500 to $40,000 range from dip buyers. Despite the recent pullback, BTC has contributed to the broader recovery in the digital asset market. However, it’s important to note that Bitcoin is still below its all time high (ATH) of nearly $69,000 set just over two years ago.
