The price of the world’s largest cryptocurrency by market cap has fallen to its lowest level since February, triggering a series of liquidations worth hundreds of millions of dollars.
As a result, liquidations of long positions, or expectations of a price increase, have surged to over $500 million over the previous 24-hour period, according to CoinGlass. Data.
This is the biggest daily decline in the cryptocurrency market since mid-April, and an additional $80 million in short positions were liquidated.
This comes as Bitcoin fell to a low of $55,000 late Thursday. The coin has since recovered some of its losses to around $55,550, according to CoinGecko. Data Offers.
Bitcoin is struggling to regain its footing above $60,000, due to a lack of investor confidence and concerns surrounding the transfer of $2.7 billion from the cold storage of bankrupt Mt. Gox to an anonymous wallet.
Ethereum, the world’s second-largest cryptocurrency, also fell more than 4% to below $3,000, the first such drop since May 17.
Uncertainty about the US Federal Reserve’s ability to control inflation this year is negatively impacting risk assets, including cryptocurrencies.
As a result, cryptocurrency prices may continue to feel tight, with experts predicting another drop in Bitcoin to $52,000. Decrypt Previously mentioned.
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