Bitcoin Logs Drastic Drop to $54,300 After $679 Million in Crypto Liquidations, Most Altcoins See Dips

Bitcoin presently stands at $54,300 (roughly Rs. 45.3 lakh) on international exchanges like CoinMarketCap.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 5 July 2024 16:16 IST

Bitcoin Logs Drastic Drop to $54,300 After $679 Million in Crypto Liquidations, Most Altcoins See Dips

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The valuation of the crypto sector has dropped to $1.99 trillion in the last 24 hours

Highlights

ETH recorded a price drop of around 11 percent
Majority altcoins including Solana, Ripple saw losses
Analysts expect more volatile days for crypto assets

Bitcoin on Friday, July 5, recorded a drop of 8.15 percent over the last 24 hours. The value of Bitcoin presently stands at $54,300 (roughly Rs. 45.3 lakh) on international exchanges like CoinMarketCap. This records a drop of $6,527 from the price of $60,827 (roughly Rs. 50.7 lakh) that BTC was trading at, 48 hours ago. Meanwhile, on Indian exchanges like Unocoin and WazirX, Bitcoin is trading at $60,817 (roughly Rs. 50.7 lakh).

Ether followed BTC on the price chart and recorded losses. At the time of writing, ETH was trading at its three-month low of $2,887 (roughly Rs. 2.4 lakh) on international exchanges. The crypto price tracker by Gadgets360 showed ETH trading at around $3,234 (roughly Rs. 2.7 lakh) on Indian exchanges like WazirX. On foreign and national exchanges, ETH has recorded a price drop of around 11 percent in the last 24 hours.

The main factor leading top crypto assets to record big price dips is the wave of liquidations that has hit the crypto market. According to data by CoinGlass, a total of 234,518 traders liquidated $679.38 million (roughly Rs. 5,672 crore) in the last 24 hours.

Crypto liquidation refers to the process of forcibly closing a trader's positions in the market because the trader's margin account can no longer support their open positions. This happens if the trader lacks sufficient margin to meet the maintenance requirements, explained CoinGlass.

“With 3 major supply overhangs (Mt.Gox, the US and German governments) currently being unloaded on to the BTC markets, the expected selling pressure has brought down prices of the largest crypto asset. With BTC prices now falling below the 200-day SMA line for the first time since October 2023, this has sent shockwaves across the broader markets with altcoins plunging by 10-20 percent,” the CoinSwitch Markets Desk told Gadgets360.

On Friday, Dogecoin, Avalanche, Shiba Inu, and Polkadot followed BTC and ETH to reflect price dips on the crypto charts.

Litecoin, Polygon, Stellar, and Cosmos also failed to see any relief from the market pressure and showed losses.

“Such movements usually present opportunities, especially for scalpers to recover their liquidated trades.” said Avinash Shekhar, CEO and Co-Founder, Pi42.

The overall crypto market cap tumbled by 8.32 percent in the last 24 hours. For the first time this year, the valuation of the crypto sector dropped to $1.99 trillion (roughly Rs. 1,66,17,286 crore), showed CoinMarketCap. Around 48 hours ago, the crypto market cap was standing atop the valuation of $2.26 trillion (roughly Rs. 1,89,22.176 crore).

“Today's US unemployment rate announcement will be crucial and could induce more volatility in the market,” CoinDCX told Gadgets360.

Meanwhile, the small group of altcoins that managed to retain gains on the price chart includes Leo, DogeFi, and Bitcoin Hedge.

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Cryptocurrency Prices across Indian exchanges

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Further reading: Cryptocurrency, Bitcoin, Ether, Qutm, Wrapped Bitcoin, Zcash, Tether, USD Coin, Ripple, Binance USD, Binance Coin, Cardano, Polygon, Solana, Polkadot, Dogecoin, Shiba Inu, Litecoin, Uniswap, Tron, Monero, Dash, Bitcoin Cash, Flex, Cartesi, Braintrust, Kishu Inu, Circuits of Value

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More