Bitcoin Plunges Below $54K, Crypto Liquidations Spike to $665M Amid Market Uncertainty

Bitcoin prices skyrocketed to an unprecedented $73,798 in March, fueled by robust demand for the inaugural US Bitcoin exchange-traded funds. However, the recent decline in token ETF inflows has put pressure on Bitcoin prices, signaling a potential shift in market sentiment. Stay tuned for updates on Bitcoin’s future movements and ETF performance.

• BTC Plunges to Feb Lows: Market Turmoil?
• Bitcoin Price Plunge: ETF Slump, Politics, Liquidations Weigh In

BTC Plunges to Feb Lows: Market Turmoil?

As the market turmoil continues, crypto liquidations have skyrocketed to $664.5 million over the past 24 hours, reaching a two-month high, according to CoinGlass. Despite a slight recovery to $54,300, Bitcoin remains down approximately 7.4% in the last 24 hours.

The fall of Bitcoin has had a Ripple effect on other highly traded cryptocurrencies as well. Ether, with a price of $2,880, and Solana, trading at $126, have both experienced near 10% drops on the day. Ether, specifically, dropped below its crucial $3,000 support level that it had held since mid-May, according to Cointelegraph Markets Pro data.

The sell-off in BTC has been exacerbated by several factors. Firstly, traders are rattled by the potential sell pressure stemming from the $8.5 billion in Bitcoin creditor paybacks by the defunct crypto exchange Mt.Gox. Adding to this pressure, on July 5, the exchange transferred a massive 47,229 BTC, worth approximately $2.6 billion, to a new address in its first significant move since May.

Furthermore, the German government has also contributed to the selling pressure on Bitcoin by disposing of 7,583 BTC worth $419.5 million since June 19. It still holds a considerable amount of 42,274 BTC, valued at approximately $2.3 billion.

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Bitcoin Price Plunge: ETF Slump, Politics, Liquidations Weigh In

Amidst a backdrop of fluctuating market sentiment and evolving regulatory landscapes, Bitcoin prices have plummeted in recent weeks, reflecting a perfect storm of factors that have battered the cryptocurrency’s bullish momentum. The initial euphoria surrounding the launch of US Bitcoin exchange-traded funds (ETFs) has given way to a more cautious market as ETF inflows have tapered off, leading to a significant drop in Bitcoin prices.

The decline in ETF demand has been a key driver behind the recent slump in Bitcoin’s value. As investors pull back from the market, the lack of fresh capital inflows has put downward pressure on the cryptocurrency’s prices. Moreover, the pending approvals for Ether-based ETFs, the second-largest token by market capitalization, have further dampened investor sentiment and contributed to the overall bearish trend.

Adding to the mix, political developments in the US and around the world have also cast a shadow over Bitcoin prices. Concerns about potential regulatory changes and the disposal of seized cryptocurrencies by governments have raised questions about the long-term viability of Bitcoin as a store of value and a medium of exchange.

Furthermore, Bitcoin (BTC) has experienced a wave of liquidations totaling over $121 million as long positions were forcibly closed amidst mounting losses. This has exacerbated the sell-off, leading to further declines in the cryptocurrency’s price. Over the past month, Bitcoin has fallen by 15%, reflecting heightened market volatility and a bearish sentiment that shows no signs of abating.

Industry experts are warning that there may be additional resistance for Bitcoin to regain the $60,000 levels, as bears continue to dominate the market due to liquidations, whale movements, miner sell-offs, and other factors. The asset sell-off by the German government is another factor adding to the volatility in Bitcoin, highlighting the fragility of the current market conditions.

In addition, the failed Mt. Gox exchange is also making headlines as administrators begin returning a hoard of Bitcoin to creditors in stages. Speculators are uncertain about how much of the $8 billion haul will ultimately be sold, adding another layer of uncertainty to the already volatile Bitcoin market.