The value of BTC eased back to touch around $57,874 before triggering the wider plunge across various tokens, while liquidating over $54.9 million in longs has been recorded by Bitcoin within a 24-hour period. At one point, Bitcoin dropped to around $57,874 on the Coinbase exchange this Sunday, July 4, which is less than a total of two months; that was its first ever fall below the solid price marker at almost 58k.
As of the time of writing, Bitcoin is trading at $58,825 after leveling out over the past hours, yet it remains 3.5% down on the week, according to CoinMarketCap.
The drop in Bitcoin occurs as tens of millions of leveraged longs are extinguished, impacting individuals who expected the value to rise. Meanwhile, the investors who went long on Ether as ETFs started to hit markets soon (as early as mid-July) have also had their composite wiped out. In the past 24 hours, investors liquidated a total of $57.9 million worth of Ethereum long positions.
The defunct Japanese crypto exchange Mt. Gox is still responsible for a significant portion of the broader decline in Bitcoin prices. Repayments on its approximately $8.5 billion worth of BTC that creditors have frozen will commence this month with the implementation of its new rehabilitation plan. This date is expected to have a significantly greater impact on market reactions than any short-term pressures resulting from transactions marked by mass tweets.
Some analysts believe Bitcoin redemptions may not be as bad as others think. Downward pressure affected most other major cryptocurrencies and altcoins during Bitcoin’s short trip south of $58,000. At press time, ether (ETH) is down 4.5%, briefly touching as low as $3,145 during a sudden sell-off at around 2:00 UTC on July 4. At press time, BNB is 6% down from $573 to $539. A rise to the other side, translating back by 10% of the current value, will bring Solana price down to $135, pulling back most gains in the latest round thus far at -10.3% over the last twenty-four hours that saw a max rate this week printing onto an area around $154, slipping to $136 as of press time.
In the meantime, on Twitter, “buy the dip” has become very popular within the past 2 days, as it has doubled in mentions across Twitter and in the largest crypto subreddits on Reddit, X, and 4Chan platforms.
To sum up, the short term remains uncertain for Bitcoin and crypto in general, despite the fact that there are still a significant number of optimists, as evidenced by the increased sentiment of “buying on dips.” However, analysts suggest that recovery may commence if the Bitcoin future price can maintain floors such as $8.4K and stabilize at a higher level. This would also reinstate the market’s bullishness from 2017. Ethereum ETFs and institutional interest are among the developments that could potentially accelerate this over the next few quarters.
