The cryptocurrency market saw a significant downturn as Bitcoin and altcoins experienced a sharp decline in prices. Bitcoin dropped below $61,000, leading to over $320 million in total liquidations within 24 hours. This bearish trend was evident across the board, with Ethereum, Solana, BNB, XRP, Uniswap, and Maker all recording losses.
The liquidations primarily affected leveraged long positions, totaling over $324 million, with the majority being long positions amounting to $286 million. Bitcoin alone accounted for nearly $132 million of the liquidations. Over 85,440 traders were liquidated during this period, with the largest single liquidation order occurring on Binance for $15.36 million.
The sharp fall in Bitcoin prices on June 24 was attributed to various factors. The announcement by the trustee of the bankrupt Mt. Gox exchange regarding repayments to creditors starting in July caused a negative market reaction. With over $9 billion in BTC set for distribution, fears of a potential sell-off emerged, leading to a 5% drop in Bitcoin prices.
Additionally, selling pressure was observed from a wallet linked to the German government, which had seized close to 50,000 BTC earlier this year. The recent selling of a significant number of BTC from this wallet, combined with miners selling around 30,000 BTC post-halving, contributed to the downward pressure on prices.
Overall, the cryptocurrency market experienced a turbulent period with significant liquidations and price declines. The impact of external factors such as the Mt. Gox trustee announcement and government-related selling added to the bearish sentiment in the market. Traders and investors will be closely monitoring the situation for any signs of a potential recovery in prices.