Bitcoin’s price took a hit recently, dropping to a one-month low as a result of a sell-off in altcoins that triggered a $455 million crypto liquidation. This sudden plunge in Bitcoin’s value came after three consecutive days of outflows from its spot exchange-traded funds (ETFs).
The leading cryptocurrency initially surged to $67,000 before plummeting to around $64,500 during early Asian trading hours. Along with Bitcoin, other major cryptocurrencies like Ethereum, Solana, and Toncoin also experienced significant declines, each losing over 3% of their value.
Markus Thielen, the founder of 10x Research, explained that the drop in altcoin prices was expected due to significant token unlocks last week. Tokens such as Aptos, IMX, Starknet, SEI, and Arbitrum had unlocks totaling $483 million, leading venture capital investors to cash out and adding to the downward pressure on Bitcoin.
Recent data from Coinglass shows that $455 million was liquidated across all assets from over 172,000 crypto traders in the past day alone. Long traders took the biggest hit, losing $393 million, while short traders saw $62 million liquidated.
Ethereum speculators faced significant losses, with approximately $92 million liquidated, accounting for 20% of the total losses. ETH traders who were betting on price increases lost $75 million, while short-position holders saw $16 million liquidated.
Bitcoin also saw $47.43 million in long liquidations and $22.71 million in short liquidations. Other large-cap cryptocurrencies like Solana, XRP, and Dogecoin also experienced notable liquidations, totaling $18 million, $4 million, and $60 million, respectively.
Interestingly, traders on the Binance platform accounted for over 37% of the total market losses, with $170 million liquidated in the past day. The largest single liquidation was a $6.64 million long ETH position.
Overall, the recent sell-off in altcoins and the subsequent liquidation of over $455 million in crypto assets have had a significant impact on the overall cryptocurrency market. Investors and traders are closely monitoring the situation to see how Bitcoin and other major cryptocurrencies will respond in the coming days.