Bitcoin price slip comes as spot Bitcoin ETFs recorded another major net outflow.
Bitcoin (BTC) has been facing intense price fluctuation in the last few weeks. The coin is currently trading at $60,281.10 with a 3.7% price drop in the past 24 hours.
Before cresting at this point, Bitcoin had slightly slipped below $60,000. Expectedly, this Bitcoin price decline has triggered a ripple effect for other digital currencies including Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and other meme coins as they have equally facing intense drawdowns.
$162.22M Liquidated in 24 Hours
Furthermore, the crypto industry has seen a series of liquidations as investors attempt to secure the value they have left on their crypto holdings. According to CoinGlass data, leveraged long positions have known better days than the last 24 hours. During this period, more than 56.670 traders were liquidated, taking with them $162.22 million.
Top cryptocurrency exchanges including Binance, OKX, and HTX (formerly Huobi) saw a collective liquidation of $44.13 million liquidation in the long position. Noteworthy, Binance is leading the group with a total liquidation of $15.63 million. However, the largest single liquidation in the last 24 hours, valued at $4 million, was from the OKX exchange.
In the space of 24 hours, about $46.22 million worth of Bitcoin has been wiped out from the market. In complement, $42.01 million in Ethereum has been liquidated as well. Similarly, $10.18 million in Solana and $22.27 million in other assets have been liquidated.
For a 1-hour timeframe, Bitcoin has had almost $1 million wiped out in long positions. Traders have also liquidated $529,710 in Ethereum, $624,350 in Solana, and $219,260 in other cryptocurrencies.
These liquidations are a result of the disparity in the contract’s target price and the spot price. Ordinarily, traders place long contract bets that the price of an underlying asset, like Bitcoin or Ethereum, will increase. Then, there are short contracts that traders use to bet the price of an underlying asset will fall.
Liquidation becomes the way forward when the gap between a contract’s target price and the spot price gets too wide for the trader to cover the margin.
Bitcoin Price at the Mercy of Mt.Gox Rehabilitation Plan
Meanwhile, Bitcoin price slip comes as spot Bitcoin ETFs recorded another major net outflow. This Bitcoin ETF outflow followed five days of consecutive inflows. On Monday, the US-based spot Bitcoin ETFs registered a total cash inflow of about $129.45 million with no negative cash flows from any of the issuers.
However, the daily net outflows of Tuesday which hit $13.62 million, returned the Bitcoin ETFs to negative flows. The crypto market is still preparing for the potential impact that Mt. Gox’s repayment will have on the ecosystem. The defunct cryptocurrency exchange has promised to start sending Bitcoin and Bitcoin Cash (BCH) to affected investors under the Rehabilitation Plan this July.
With over $9 billion set to flood the market, more unpredictable price swings might be recorded in the coming weeks.
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