Bitcoin’s Steep Drop: Liquidations Surge

Bitcoin Plunges

Bitcoin has taken a hit, dropping to $65,000. This is a significant setback after its recent record highs. At the time of writing, Bitcoin is trading at $65,710, down 5.6% in the last 24 hours and 4.5% in the last week.

Altcoins Suffer Too

Bitcoin’s downturn has also affected altcoins. Ethereum (ETH) and Binance Coin (BNB) have lost over 10% of their value. Dogecoin and Shiba Inu have fallen even more sharply, by 20% and 30%, respectively.

Market Impact

Bitcoin’s price correction has shaken up the cryptocurrency market. Over 151,000 traders have been forced to sell their positions, resulting in $426 million in liquidations. Bitcoin accounts for the majority of these liquidations, showing its influence on the overall market.

Liquidation Spree

In the last 24 hours, Bitcoin liquidations have exceeded $104 million. Long traders have lost the most money, with $86 million in losses compared to $18 million for short sellers. Ethereum has also seen significant liquidations, with $48 million lost overall.

Analyst’s Warning

Market analysts like Markus Thielen are cautioning investors about further downside risks for Bitcoin. Thielen predicts a potential drop to $63,000, urging caution and prudence. His analysis highlights concerns about Bitcoin’s market structure, including low trading volumes and liquidity, which increase the risk of sharp price corrections.

Meme Coin Mania Fades

The recent market turbulence has led investors to reassess their positions in meme coins like Dogecoin and Shiba Inu. The era of meme coin mania appears to be waning as investors look to secure profits while they can.