Key Highlights
- If Bitcoin plunges below $60,000, over $2.2 billion in leveraged long positions could be wiped out from the crypto market
- The crypto market is facing a downward trend after facing intense liquidation and heavy selling pressure
While the crypto market is facing a catastrophic downfall, there is another big threat looming over the market. According to the report, if Bitcoin (BTC) drops below the $60,000 support level, the crypto market could face intense liquidation and lose $2.22 billion in a long position.
(Source: Whale Insider on X)
At the time of writing, Bitcoin is trading at around $66,084 with a market capitalization of $1.32 trillion. The cryptocurrency has dropped around 2.3% on a daily chart, according to CoinMarketCap.
After getting temporary peaks, the current liquidation in the market has wiped out all gains generated in the last 2 days. The selling pressure in the crypto market has led to forced closures in the derivatives market.
According to Coinglass, the total liquidation in the crypto market over the last 24 hours has reached approximately around $503 million. In this, long position accounted for around $426.6 million, which is around 85% of the total. In this, Bitcoin alone faced over $204 million in long positions forcibly closed.
The continuous liquidation in the crypto market has brought the total number of liquidated traders to more than 137,000. According to the experts, low liquidity during the Asia-Pacific time zone has intensified liquidation. It has only a few bids in the order book, allowing sellers to send prices down more rapidly than during peak trading hours.
Sentiment Reaches “Extreme Fear”, Strategy Buys More Bitcoins
The selloff came after turmoil in the global market. According to experts, investors are grappling with renewed trade policy turbulence after U.S. President Donald Trump announced over the weekend an increase in proposed global tariffs from 10% to 15%. This comes after a recent Supreme Court ruling that challenged Trump’s decision to use emergency authorities.
On-chain data from Coinglass shows that short-term investors are continuously facing realized losses at an average rate of $500 million per day. This is a sign of panic distribution.
As Bitcoin is planning to stabilize near $66,000, traders are intensely focused on the levels below. The data from liquidation heatmaps reveals a great concentration of leveraged long positions locked between the current price and the important psychological support at $60,000.
Amid the downward trend in the crypto market, Michael Saylor’s Strategy has announced the fresh acquisition of 592 Bitcoin for approximately $40 million.
Also Read: Bitmine’s Ethereum Treasury Hits $9.6B Despite the Market Dip
