Bitcoin continues to wrestle with the $60,000 price level, as ongoing fluctuations highlight the uncertainty plaguing the cryptocurrency market. On Saturday, August 3, the digital currency experienced a sharp decline, momentarily dipping below the $60,000 mark before rebounding. This brief but significant drop stood in stark contrast to the earlier part of the day when Bitcoin had been trading above $62,000, rattling market participants and triggering a wave of liquidations.
In the past 24 hours, over $197 million worth of leveraged positions have been liquidated, a number that peaked at $288 million during the height of the selling pressure. This volatility has exacerbated the cautious sentiment among traders and investors, who are closely watching Bitcoin’s unpredictable movements.
Adding to the market’s unease are recent developments involving Genesis Global Capital, the bankrupt crypto lender that has reportedly initiated repayments. This influx of additional digital assets, primarily Bitcoin and Ethereum, has further muddied the waters. Given the market dominance of these two cryptocurrencies, their liquidations have had a ripple effect, pulling down other digital assets with them.
Data from Coinglass details that Ethereum led the market with $57.22 million in liquidated positions, followed closely by Bitcoin with $46.19 million, and Solana with $15.35 million. The broader crypto market cap currently stands at $2.1 trillion, struggling to maintain stability. The liquidation amounts saw the majority, $159.88 million, in long positions. Notably, most of these liquidations occurred on major crypto exchanges like Binance, OKX, and Bybit, where the long liquidation rates hit around 80%.
The industry is no stranger to massive liquidations amidst prevailing bearish sentiments. For instance, on June 24, nearly $300 million worth of positions were wiped out within a single day. Similarly, on June 7, the market saw over $360 million in liquidations when Bitcoin’s price plunged from $71,000 to $68,000. These patterns suggest that the market may face continued instability in the near future.
Bitcoin’s struggle to hold above the $60,000 mark reflects broader market challenges, with the influence of factors like Spot Bitcoin ETFs becoming increasingly evident. Last week, these ETFs ended on a negative note, culminating Friday’s trading session with $237.4 million in outflows—the largest daily outflow since May 1. This ongoing volatility signals that the industry is far from reaching a stable footing, leaving traders and investors in a state of perpetual vigilance.
