565 million dollars as the value of Bitcoin dropped: what to expect
Over the past day, the cryptocurrency market has experienced significant turbulence as the price of Bitcoin fell below $65,000, leading to widespread liquidity.
This sharp decline wiped out nearly $565 million in market value, impacting both long and short traders.
Long traders lost more than $400 million.
The collapse of the crypto market has caught bullish traders on their toes, resulting in over $400 million in losses for this group in the last day alone.
According to data from CoinGlass, valuations have seen a total loss of $565 million over this period. Long traders lost $438 million, while short traders lost $126 million.
Bitcoin longs were especially hard hit, losing $153 million, followed by Chainlink fans, who lost $94 million. Ethereum and Solana traders lost more than $130 million in total.
These events affected more than 200,000 traders, more than 50% of which trade on the Binance and OKX exchanges.
Read more: 10 Best Crypto Exchanges and Apps for Beginners in 2024
This decline may be due to Bitcoin's price briefly falling below $65,000, the lowest since early March. As a leading digital asset, BTC price movements reflect the broader market direction. Therefore, major cryptocurrencies such as Ethereum, Avalanche, BNB, Cardano and Chainlink have experienced significant price drops.
Meanwhile, many crypto analysts interpreted this decline as a predictable market behavior. According to Rect Capital, despite the entry of spot bitcoin exchange-traded funds (ETFs), the current bull market is vulnerable to a pre-half recovery. These iterations usually occur 14-28 days before Bitcoin halving.
Read more: Bitcoin price prediction for 2024/2025/2030
Comparing previous cycles, the analyst noted that the 31-day retracement after BTC's current 11% pullback is similar to past patterns, which were 20% and 40% deeper in 2020 and 2016, respectively.
“Bitcoin will go back to convince itself that the bull market is over. And then it will continue to rise,” Rect Capital said.
Therefore, the analyst warned that BTC will enter the “danger zone” in the next three days and urged traders to be careful.
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