The price of the world’s largest cryptocurrency by market capitalization has fallen to its lowest level since February, triggering a cascade of liquidations worth hundreds of millions of dollars.
As a result, long position liquidations, or expectations of a price increase, surged to more than $500 million in the previous 24 hours, according to data from CoinGlass.
This is the largest single-day loss for the cryptocurrency market since mid-April. Another $80 million in short positions were also liquidated.
Bitcoin’s price fell to $55,000 late Thursday. The asset has since recovered some of its losses to reach around $55,550, according to data from CoinGecko.
Bitcoin has struggled to regain a foothold above $60,000 amid lack of investor confidence and concerns over a $2.7 billion transfer from Mt. Gox bankruptcy estate cold storage to an unidentified wallet.
Ethereum, the world’s second-largest cryptocurrency, also fell more than 4% below $3,000, the first such drop since May 17.
Uncertainty over the US Federal Reserve’s ability to control inflation this year is weighing on risk assets, including cryptocurrencies.
As a result, cryptocurrency prices could continue to suffer the blows, with experts predicting a further drop in Bitcoin to $52,000. Decrypt Previously reported.
News Source : decrypt.co
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