Bitcoin
Bitcoin Slides to $55,000 as Liquidations Surpass $600 Million
The price of the world’s largest cryptocurrency by market capitalization has fallen to its lowest point since February, triggering a cascade of liquidations worth hundreds of millions of dollars.
As a result, liquidations in long positions, or expectations that prices will rise, have soared to more than $500 million in the previous 24-hour period, according to CoinGlass data.
This is the largest single-day wipeout for the cryptocurrency market since mid-April. An additional $80 million in short positions were also liquidated.
This comes as the price of Bitcoin dropped to $55,000 on Thursday evening. The asset has since recovered some losses to around $55,550, CoinGecko data show.
Bitcoin has struggled to regain a foothold above $60,000, plagued by a lack of investor confidence and concerns surrounding a $2.7 billion transfer from Mount Gox cold storage of the bankruptcy estate for an unidentified portfolio.
Ethereum, the world’s second-largest cryptocurrency, also fell more than 4% below $3,000, the first time since May 17.
Uncertainty over the US Federal Reserve’s ability to control inflation this year is weighing on risk assets, including cryptocurrencies.
As a result, cryptocurrency prices may continue to feel the pinch, with experts predicting a further Bitcoin drop to $52,000, Decrypt previously reported.