Bitcoin Plummets Below $60,000 as Traders Liquidate $115 Million in 4 Hours

Bitcoin Plummets Below $60,000 as Traders Liquidate $115 Million in 4 Hours

Amidst the impending halving event, Bitcoin’s price has dipped below the crucial $60,000 threshold, triggering significant liquidations in the crypto market.

Data from CoinMarketCap reveals that Bitcoin (BTC) has experienced a more than 3% decline over the past 24 hours, with its price hovering around $59,800 at the time of reporting. Concurrently, cryptocurrency trading volumes have decreased by nearly 12%, totaling $40 billion.

CoinGlass data underscores a flurry of liquidations among traders, with over $115 million worth of assets offloaded in the last four hours alone. Of this amount, approximately $96.70 million constituted long positions, while the remainder comprised short positions. Notably, the largest share of liquidations occurred on the OKX crypto exchange, amounting to $43.81 million.

With the imminent BTC halving just days away, traders are likely adjusting their positions in anticipation of the seismic event. The halving, which will slash miner rewards by 50%, is expected to reduce the influx of new coins into the marketβ€”a development viewed optimistically by some Bitcoin proponents.

The heightened volatility in the lead-up to the halving can be attributed not only to the impending event but also to other market factors. Investor withdrawals from prominent Bitcoin ETFs have surged following comments by U.S. Federal Reserve Chairman Jerome Powell, who suggested that the central bank requires further progress on the inflation front before considering rate cuts.

Markus Thielen, head of research at 10x Research, highlights that crypto miners commenced accumulating Bitcoins in January 2024 to tilt the supply-demand balance in their favor. This accumulation drove BTC’s price sharply higher, culminating in its historical peak in March.

However, Thielen cautions that digital asset mining companies are poised to gradually liquidate their accumulated coins post-halving, potentially exerting downward pressure on cryptocurrency prices.

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