Bitcoin saw a significant drop below the $58,000 mark, hitting as low as $57,874, marking its first fall below this level in over two months. At the time of reporting, it has slightly recovered to trade around $58,964, down 3.4% for the week, according to Coinbase data.
This price decline was accompanied by a large-scale liquidation of leveraged long positions that reached more than $55.18 million in Bitcoin in the last 24 hours, according to CoinGlass.
Likewise, Ethereum (ETH) also faced a sell-off and its market value declined to about $57.95 million in long positions closed during the same period amid expectations of several spot ETFs that are expected to be launched by mid-July.
Some analysts attribute part of the market decline to the impending repayments by the defunct Japanese crypto exchange Mt. Gox, expected to begin repaying about $9 billion, but argue that the effects on Bitcoin’s price may be less severe than estimated.
Other leading cryptocurrencies and altcoins also experienced significant declines when Bitcoin fell. Ether (ETH) declined by 4.5% on the day and fluctuated to as low as $3,145 during the selling period.
Binance Coin (BNB) was down by 6% and fell from $573 to $539. In the same way, Solana (SOL) also pulled back from recent highs and was down by 10.3% from the weekly high of $154 to $136.
However, social media discussion mirrored the investor sentiment, with the ‘buy the dip’ sentiment more than doubling recently on platforms such as Reddit, X, and 4Chan.
The cryptocurrency market remains unstable and fluctuating due to changes in regulations and investors’ sentiment, with traders paying attention to the further movement of the market in the upcoming sessions.
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