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

As the highly anticipated halving event approaches, the price of Bitcoin has plummeted below the crucial $60,000 threshold.

According to data from CoinMarketCap, Bitcoin (BTC) has experienced a significant 3% decline over the past 24 hours, trading at $59,800 at the time of reporting. Concurrently, cryptocurrency trading volumes have dipped by nearly 12%, totaling $40 billion.

CoinGlass data reveals a flurry of activity among traders, with over $115 million worth of assets liquidated in the last four hours alone. Of this total, $96.70 million constituted long positions, with the remainder being short positions. Notably, the majority of these liquidations occurred on the OKX crypto exchange, amounting to $43.81 million.

With the imminent halving of BTC on the horizon, traders appear to be exiting positions in anticipation of the seismic event. The halving is expected to slash miner rewards by 50%, thereby reducing the influx of new coins into the market—an outcome viewed optimistically by some Bitcoin supporters.

In the lead-up to the halving, Bitcoin has witnessed heightened volatility, driven not only by the impending event but also by other factors. The recent sell-off coincides with investors withdrawing funds from popular Bitcoin ETFs, following comments from U.S. Federal Reserve Chairman Jerome Powell, who emphasized the need for more progress on the inflation front before considering rate cuts.

Markus Thielen, head of research at 10x Research, highlights that crypto miners have been accumulating Bitcoins since January 2024, aiming to tip the balance between supply and demand in their favor. This accumulation drive contributed to a sharp increase in BTC’s price, culminating in a historical peak in March.

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

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