Bitcoin Plummets to New Weekly Lows as Liquidations Exceed $1.1 Billion
The downturn in Bitcoin's value continues as long positions get liquidated at unprecedented rates amid a lack of positive market momentum.
The trend continues downward for Bitcoin as it reaches new weekly lows. In the last 24 hours, the market has seen an extraordinary liquidation of long positions amounting to over $1.1 billion. Despite positive macroeconomic indicators, these have not translated into upward price movements for cryptocurrencies.
Currently, Bitcoin has dropped significantly from its peak around $116,000, demonstrating a near $20,000 decrease in the past few weeks. The cryptocurrency market responded poorly to recent Fed rate cuts, with Bitcoin plummeting from over $112,000 to $107,500, marking a new low for the week.
Likewise, altcoins have mirrored Bitcoin’s decline, with Ethereum (ETH) falling by 5% and XRP by over 6%. The downturn has particularly affected over-leveraged traders, resulting in record liquidations.
BTC Chart
BTCUSD. Source: TradingView
This market scenario highlights the ongoing volatility in cryptocurrency trading, with many traders experiencing significant losses as positions are forcibly liquidated. Liquidation continues to be a concern for market participants as further declines could take place if the bearish trend continues.
