Bitcoin Crash Raises $500 Million in Liquidity
Bitcoin (BTC) experienced a major decline today. On April 2, 2024, at 02.45 UTC, the price of Bitcoin briefly fell below $67,000, resulting in more than $500 million in trader liquidity.
The decline comes after BTC managed to bounce back to $71,000 yesterday.
Should Bitcoin Investors Be Wary of Further Corrections?
Based on data provided by CoinGlass, over the past 24 hours, the cryptocurrency market has seen a significant amount of liquidity. The total amount of liquidation reached $500.45 million, resulting in the loss of 154,729 traders.
It should be noted that the majority of these discharges came from longshore areas, around 84.19%. Among all cryptocurrency exchanges, Binance and OKX have the largest liquidity with $202.84 million and $176.48 million, respectively.
Read more: 10 Best Crypto Exchanges and Apps for Beginners in 2024
Further complicating the market's woes is the $85 million outflow from Bitcoin ETFs. The Greyscale Bitcoin Trust (GBTC) is the largest contributor to this flow, with $302.6 million leaving the fund.
GBTC has experienced significant outflows, with total outflows reaching $15.07 billion so far. This is in stark contrast to the positive cumulative flows of other SEC-approved Bitcoin ETFs.
Cryptocurrency analyst Jason Pizzino has warned that Bitcoin's price may continue to decline based on recent market performance.
“Watch for emotional fireworks if Bitcoin breaks $68,300 and many altcoins continue to grind out the currently low BTC pairs,” Pizzino said.
Pizzo's analysis indicates the possibility of a broader market correction, as Bitcoin's price action often influences other cryptocurrencies. In fact, the total cryptocurrency market capitalization dropped to $2.63 trillion, equivalent to 6.1% in the last 24 hours.
Read more: 11 Best Altcoin Exchanges for Crypto Trading in April 2024
In particular, Ethereum (ETH) showed a decrease of 6.4% in the last 24 hours. Similarly, Solana (SOL) experienced a sharp fall of 9.2% in value. The Mem Coins category faced more drops. At the same time, DogwhipHat (YFF) was down 12.8%, and PEPE was down 15%.
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
