Bitcoin’s price suffered a drop on Monday, reaching just over $66,000 around 10:00 p.m. Eastern Time (ET). By 6:30 a.m. the next day, it had fallen even further to hit a low of $65,480 per unit. As a result, bitcoin long positions worth $135.3 million were liquidated in the crypto derivatives markets.
Bitcoin’s value has seen a decline of 5% in the past 24 hours and 8% over the previous week. Currently, it is being traded at $65,850 per unit, with a low of $65,480 during early trading. This decline comes with only 18 days left until bitcoin’s fourth halving event, which will reduce block rewards from 6.25 bitcoins to 3.125 bitcoins per block.
This downward trend coincides with market watchers eagerly awaiting the U.S. Federal Reserve’s next moves, as they are expected to maintain high interest rates. While the Federal Reserve’s decisions have historically affected risk assets, the latest decision had a minimal impact on bitcoin prices, unlike previous instances. The CME’s Fed Watch tool currently indicates a 95.5% chance that the interest rate will remain unchanged, with 29 days until the Federal Reserve’s decision.
Despite the decline, the cryptocurrency market has experienced a 40% increase in trading volume, reaching $141.17 billion in the last 24 hours, with bitcoin accounting for $41.39 billion of that total. The most active trading pairs for bitcoin on Tuesday are USDT and FDUSD, followed closely by trades in USD, USDC, and KRW. The Korean won represents 2.69% of bitcoin’s total trading volume. While the global average price hovers just above $66,000, bitcoin is being sold for as much as $71,295 in South Korea.
The crypto market downturn has led to significant liquidations, with $135.3 million in bitcoin long positions being cleared out in the past day. Across the entire crypto market, total liquidations of long positions amounted to $354.20 million, and when including shorts, the total liquidations for the day reached $449.81 million. Data from 6:30 a.m. ET on Tuesday shows an almost equal split between long (49.21%) and short (50.79%) positions.
What are your thoughts on bitcoin’s price movement on Tuesday? Feel free to share your opinions and thoughts on this matter in the comments section below.
