Bitcoin Plunges
After a dismal June, investors hoped July would bring a recovery. However, Bitcoin has now not only lost its initial gains but has also fallen below $58,000, marking a 4% drop in the past 24 hours.
Derivative Market Meltdown
The Bitcoin crash has triggered a mass liquidation event in the cryptocurrency derivatives market. According to CoinGlass, over $294 million worth of contracts have been liquidated in the past day.
Long Contract Holders Hit Hard
Long contract holders, who bet on Bitcoin’s price rising, have been the hardest hit, contributing $257 million to the liquidations. This is over 87% of the total.
Aggressive Speculation
Despite Bitcoin’s recent stability, $53 million of liquidations occurred in the past four hours, suggesting that speculators are aggressively betting on catching the bottom.
Bitcoin and Ethereum Lead Liquidations
Bitcoin and Ethereum have dominated the liquidations, with a gap of only $20 million between them. Solana (SOL) is a distant third, with a drop of $59 million. This indicates that speculation has been concentrated on the two largest cryptocurrencies.
