The price of Bitcoin (BTC) has fallen to $55,011 on Coinbase, its lowest level since late February 2024. This drop was accompanied by record liquidation volume on the cryptocurrency market, reaching almost $588 million in the last 24 hours.
A sharp drop in the price of Bitcoin
Bitcoin hit a four-month low on July 5, at 3:11 UTC on Coinbase. At that point, BTC plummeted to $55,011, down 3% on the day. Other major cryptocurrencies such as Ether (ETH) and Solana (SOL) also suffered declines approaching 10%. Investors fear that this downward trend will continue in the short term.
Massive liquidations on the crypto market
This drop in the Bitcoin price was accompanied by a record volume of liquidations on the cryptocurrency market. In total, almost $588 million in positions were liquidated in the last 24 hours, including $510 million in long positions and $79 million in short positions. Long positions in BTC accounted for $193.19 million of these liquidations.
Market sentiment dominated by fear
This sharp fall in Bitcoin’s price and the large-scale liquidations have also caused investor sentiment to plummet. The cryptocurrency “Fear and Greed” index fell to 29 out of 100 on July 5, indicating a dominant “Fear” sentiment in the market. Many analysts are warning of further volatility in the short term. Traders and investors are now on their guard, fearing further potential declines.
