Bitcoin’s price took a sharp downturn over the weekend, falling by an additional 7.7% in the past 24 hours. It reached a daily low of $61,384 per coin, triggering a significant wave of leveraged liquidations on Saturday.
The value of Bitcoin declined amidst market instability, with extensive liquidations being reported. By 4:00 p.m. Eastern Time on Saturday, the price of Bitcoin dropped below the $62,000 threshold, having hovered around $67,000 earlier in the morning. Within three hours, the cryptocurrency experienced a 7.7% decrease, driven by a flurry of panic selling that began at 1:00 p.m. Over a two-week period, Bitcoin has fallen by 8.7% against the U.S. dollar, while trading volume surged to $41.63 billion throughout the day.
At around 4:15 p.m., the price stabilized just above the $62,000 mark, with several attempts to climb into the $63,000 range. However, despite some recovery, Bitcoin lost $4,500 in value within a three-hour span. Long positions in Bitcoin alone saw $167.13 million wiped out in hourly liquidations, contributing to the total liquidations across the cryptocurrency market nearing the $1 billion mark again. The 24-hour liquidation tally at 4:15 p.m. stood at $697.07 million, with $598.91 million from long positions.
By 4:25 p.m., bears pushed Bitcoin’s price back below $62,000, triggering further leveraged liquidations. Throughout the day, 219,299 traders faced liquidation. This surge in selling pressure could potentially push Bitcoin prices even lower, perpetuating a cycle that accelerates the decline. Often, such rapid sell-offs are driven by emotional reactions rather than thoughtful analysis, leading more traders to sell in an attempt to minimize losses. Bears are also likely to take advantage of this situation. Currently, at 4:45 p.m. on Saturday, Bitcoin is trading at $62,777 per coin on Bitstamp.
What are your thoughts on the selling pressure that occurred on Saturday? Feel free to share your opinions and thoughts on this matter in the comments section below.
