The price of Bitcoin experienced a significant drop of over 7% on Tuesday morning, as the entire crypto market saw a bloodbath, causing altcoins to enter correction territory. BTC reached a low of $62,438 and was threatened to dip even further to the $60k level.
In tandem with Bitcoin’s struggles, the altcoin market also saw a sharp decline. Ethereum, Solana, BNB, Cardano, and Avalanche all fell by double digits, with ETH dropping to $3,200, SOL to $172, and BNB to $502. Cardano and Avalanche also saw significant drops to $0.59 and $55, respectively.
According to data from Coinglass, over 240,000 traders were liquidated in the past 24 hours, resulting in a total of $651 million in liquidations. Long positions were hit the hardest, with over $538 million in liquidations, followed by shorts with $113 million. BTC and ETH accounted for the majority of these liquidations.
The largest single liquidation order occurred on the OKX exchange, where a trade involving the BTC/USDT-SWAP was valued at $12.25 million. This was preceded by a whale selling 400 BTC on the BitMEX exchange, causing BTC’s price to drop to $8,900.
While BTC’s price remains above $60k across major exchanges, crypto analyst Ali suggests that it could potentially drop to key support levels at $56k or even $51k. According to Ali, the critical resistance points for BTC are currently at $66,990 and $72,880.
Bitcoin’s recent surge to an all-time high of $73,737 boosted its market cap to over $1.4 trillion, making it the world’s eighth most valuable asset, surpassing Meta and Silver. However, the current decline has pushed BTC down to 10th place, with a market cap of $1.23 trillion, behind Silver with $1.41 trillion and Meta with $1.26 trillion.
To summarize, the recent drop in Bitcoin’s price has caused a ripple effect in the altcoin market, resulting in significant declines across the board. Traders have also experienced a high number of liquidations, with BTC and ETH being the most affected. However, Bitcoin’s market cap remains impressive, although it has dropped from its previous ranking as the world’s eighth most valuable asset.