Bitcoin Sees Dramatic Drop to $54,300 After $679 Million in Crypto Liquidations, Most Altcoins See Declines

Bitcoin has seen a 8.15 percent decline in the last 24 hours on Friday, July 5. Bitcoin is currently valued at $54,300 (roughly Rs. 45.3 lakh) on international exchanges like CoinMarketCap. This marks a decline of $6,527 from the price of $60,827 (roughly Rs. 50.7 lakh) that BTC was trading at, 48 hours ago. Meanwhile, on Indian exchanges like Unocoin and WazirX, Bitcoin is trading at $60,817 (roughly Rs. 50.7 lakh).

Ether followed BTC on the price chart and recorded losses. At the time of writing, ETH was trading at its three-month low of $2,887 (roughly Rs. 2.4 lakh) on international exchanges. cryptocurrency price tracker Gadgets360 showed that ETH was trading at around $3,234 (roughly Rs. 2.7 lakh) on Indian exchanges like WazirX. On foreign and domestic exchanges, ETH saw a price drop of around 11 percent in the last 24 hours.

The main factor that caused major crypto assets to see large price drops is the wave of liquidations that hit the cryptocurrency market. According to CoinGlass dataA total of 234,518 traders liquidated $679.38 million (around Rs 5,672 crore) in the last 24 hours.

Cryptocurrency liquidation refers to the process of forcibly closing a trader’s positions in the market because their margin account can no longer support their open positions. This happens if the trader does not have enough margin to meet maintenance requirements, CoinGlass explained.

“With 3 large oversupplies (Mt. Gox, US and German governments) currently dumping on BTC markets, the anticipated selling pressure has driven prices of the largest crypto asset lower. With BTC prices now falling below the 200-day SMA line for the first time since October 2023, this has sent shockwaves through the broader markets with altcoins down 10-20 percent,” CoinSwitch Markets Desk told Gadgets360.

On Fridays, Dogecoin, Avalanche, Shiba Inu DogAND Polka dot followed BTC and ETH to reflect the price drops on the cryptocurrency charts.

Litecoin, Polygon, StellarAND Cosmos failed to find any relief from the market pressure and posted losses.

“Such movements usually present opportunities, especially for scalpers who want to recover their liquidated trades,” said Avinash Shekhar, CEO and co-founder of Pi42.

The overall cryptocurrency market capitalization has fallen by 8.32 percent in the past 24 hours. For the first time this year, the cryptocurrency sector valuation has fallen to $1.99 trillion (approximately Rs 1,661.7286 crore), it showed. CoinMarketCapAbout 48 hours ago, the cryptocurrency market capitalization stood at a valuation of $2.26 trillion (approximately Rs 1,892,221.76 crore).

“Today’s announcement on the US unemployment rate will be crucial and could induce more volatility in the market,” CoinDCX told Gadgets360.

Meanwhile, the small group of altcoins that managed to maintain gains on the price chart include Leo, DogeFiAND Bitcoin Coverage.

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