Bitcoin Price Dips Below $58,000 for First Time in Two Months, Wiping Out Millions in Long Positions

Bitcoin (BTC) Price Dips Below $58,000 for First Time in Two Months, Wiping Out Millions in Leveraged Long Positions

In a surprising turn of events, the price of Bitcoin (BTC) briefly fell below the $58,000 mark on Coinbase on July 4, marking the first time the asset has seen such a low price in over two months. Despite a slight recovery, BTC is currently trading at $58,964, down 3.4% on the week.

The sudden slump in Bitcoin’s price has led to the liquidation of millions of dollars worth of leveraged long positions, causing significant losses for traders who were hoping for a price increase. More than $54.9 million in Bitcoin long positions were liquidated in the last 24 hours, according to data from CoinGlass.

Similarly, traders looking to gain exposure to ETH ahead of the launch of spot ETFs saw their positions wiped out, with $57.9 million in ETH long positions liquidated in the last 24 hours.

The wider pullback in the price of Bitcoin has been attributed to the collapsed Japanese crypto exchange Mt. Gox, which is set to begin repayments of approximately $8.5 billion worth of BTC to its creditors in July. However, some analysts believe that the impact of these repayments may not be as severe as anticipated.

The sell-off in Bitcoin also affected other major cryptocurrencies and altcoins, with Ether (ETH) down 4.5% on the day and Binance Coin (BNB) falling 6%. Solana (SOL) also saw a significant drop, losing 10.3% in the last 24 hours.

Despite the market downturn, mentions of “buy the dip” have surged on social media platforms, indicating that some investors see the current situation as a buying opportunity. With speculation rife about the future direction of Bitcoin and other cryptocurrencies, traders are bracing themselves for further volatility in the coming days.