Why Is Bitcoin (BTC) Price Falling? Crypto Liquidation Tops $93M
Highlights
- Bitcoin price is bearishly flat, dragging altcoins down with it
- This drawdown has fueled a more than $93 million liquidation
- Potential rebound is imminent with spot Bitcoin ETF accumulation
The price of Bitcoin (BTC) is undergoing a very intense pressure, a trend that is dragging altcoins to new lows. With the drawdown, the price of Bitcoin is now changing hands for $69,670.58, down by 0.28% in 24 hours. This slight slip has created a deep slump in other altcoins, especially the memecoins like Floki.
Bitcoin Drawdown Triggers Intense Liquidation
As Bitcoin price slumped, Ethereum (ETH) fell by 1.20% to $3,670.56, Binance Coin (BNB) which recently saw a new All-Time High (ATH) dropped by 7.45% to $622.28. Other top altcoins like Solana (SOL) and XRP also dropped by 1.53% and 0.53% to $159.45 and $0.4960.
With the majority of altcoins correlated with Bitcoin, Toncoin (TON) showed an exception. The Telegram-backed digital currency managed to maintain its surge by 1.28% to $7.176.
Of this BTC and altcoin trends, the combined crypto market liquidation has topped $93.68 million. A total of 51,090 traders were caught up in this liquidation in 24 hours. Bitcoin is leading this liquidation trend with more than $14.59 million drained off. Ethereum and Solana comes in second and third spots with liquidations topping $12.3 million and $4.2 million respectively.
Crypto market liquidations are not new in the market as traders continues to hedge their bets through leveraged trading. Unlike what is observed in the market prior to this time, the combined market liquidation is growing, leaving pundits to question what might be the core reason for the market reaction.
For what it is worth, Bitcoin has the right incentives to surge. The United States Federal Reserve is on stock for its 2-day policy meeting that might see the announcement of a rate cut. Other central banks in the G7 including the Bank of Canada and the European Central Bank (ECB) unveiled similar rate cuts last week.
Bitcoin Rebound Imminent
These rate cuts from the G7 central banks are important growth triggers for risk assets especially Bitcoin. With lowered rates in crucial financial markets, the digital currency might be more attractive to institutional investors.
The gateway for these class of investors to embrace BTC has been created through spot Bitcoin ETF offerings. From the United States to the United Kingdom, Australia, Hong Kong and Thailand, more nations are supporting the growth of the nascent asset.
In all, Bitcoin rebound is imminent if the market indices and spot BTC ETF accumulation continues.
Read More: Floki Name Service Goes Live, Will It Trigger FLOKI Price Rebound?
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