Bitcoin plunge below $63k triggers wave of liquidations
The cryptocurrency market faced significant turbulence as Bitcoin’s (BTC) value fell below $63,000, leading to a surge in long position liquidations.
CoinGlass data shows that over the past 24 hours, Bitcoin long liquidations on centralized exchanges reached $47.9 million out of a total $49 million in liquidated BTC positions.
The broader crypto market wasn’t spared, with total liquidations exceeding $161 million, predominantly affecting long positions ($153 million). Ethereum (ETH), the second-largest cryptocurrency, saw $29.1 million in liquidations, with $28.5 million from long positions.
What are liquidations?
Liquidations occur when traders’ positions are forcibly closed due to insufficient funds, often resulting from market volatility eroding initial margins or collateral. According to CoinGecko data, Bitcoin currently trades at about $63,370, its monthly low, representing a 3.2% decrease in 24 hours and a 15% drop from its March 14 all-time high of $73,740.
The downturn has impacted altcoins as well. Ethereum declined 4% to $3,371, while Solana (SOL) experienced a steeper 7% fall, trading around $125. The GMCI 30 Index, tracking the top 30 cryptocurrencies, dropped 4% to 124.9.
CoinGecko data indicates that Bitcoin maintains a 52.64% market dominance, followed by Ethereum at 17.76%. The global cryptocurrency market capitalization has contracted by approximately 3.5% to $2.466 trillion.
An expanding market
When observing market contractions such as this one, it is easy to forget that the regulated Bitcoin market is still aggressively growing. As reported earlier this month, prominent asset manager VanEck is set to launch Australia’s first spot Bitcoin ETF on the Australian Securities Exchange (ASX) this Thursday.
This product allows investors to gain direct exposure to Bitcoin without the complexities of purchasing and storing the cryptocurrency themselves. The announcement follows April rumors and comes after Monochrome Asset Management launched a similar product on Australia’s CBOE exchange earlier this month.
Japanese investment firm Metaplanet has also recently announced plans to issue one billion yen (approximately $6.3 million USD) in bonds to purchase Bitcoin. This decision, approved by the company’s board on June 24, 2024, aligns with Metaplanet’s long-term strategy to increase its cryptocurrency holdings.
The bonds, set to be issued on June 26, will offer a 0.5% annual interest rate and mature on June 25, 2025. This move is expected to increase Metaplanet’s Bitcoin holdings from 141.07 to around 241 BTC.
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