On July 4, the price of Bitcoin briefly dropped to $57,874 on Coinbase, marking the first time the asset has fallen below the $58,000 threshold in over two months. The dip was short-lived, with Bitcoin rebounding to $58,964 at the time of publication. Despite the recovery, Bitcoin remains down by 3.4% for the week, according to TradingView data.
The sudden slump in Bitcoin’s price led to significant liquidations of leveraged long positions, adversely affecting traders who were betting on a price increase. CoinGlass data indicates that more than $54.9 million in Bitcoin long positions were liquidated within the last 24 hours.
Ether (ETH) traders also faced significant losses. Those seeking to gain long exposure ahead of the anticipated launch of several spot Ether ETFs, expected by mid-July, saw their positions wiped out. In total, $57.9 million in ETH long positions were liquidated in the same 24-hour period.
The broader cryptocurrency market experienced a pullback, with several major and altcoins selling off sharply. Ether dropped by 4.5%, briefly touching $3,145 during a sell-off at 2:00 am UTC on July 4. Binance Coin (BNB) fell 6%, declining from $573 to $539. Solana (SOL) saw a significant drop of 10.3%, plunging from a weekly high of $154 to $136 at the time of writing.
Much of the blame for the broader decline in Bitcoin’s price has been attributed to the defunct Japanese crypto exchange Mt. Gox. The exchange is scheduled to begin repaying approximately $8.5 billion worth of BTC to its creditors starting in early July. However, some analysts suggest that the repayments may not have as severe an impact on Bitcoin as initially feared.
In the midst of the market turmoil, mentions of “buy the dip” have surged on social media platforms. The phrase has seen a notable increase in usage, doubling across Reddit, X, and 4Chan in the last two days.
As the cryptocurrency market continues to experience volatility, traders and investors remain watchful for further developments and potential opportunities amidst the fluctuations.
