On July 4, Bitcoin’s price briefly fell below $58,000, reaching $57,874 on Coinbase, marking its lowest level in over two months. This decline is part of a broader sell-off in the crypto market, where $54.9 million in Bitcoin long positions were liquidated within the past 24 hours, according to CoinGlass. Although Bitcoin has since stabilized at $58,964, it remains down 3.4% for the week.
Impact on Long Positions
The sharp decline in Bitcoin’s price coincided with significant liquidations of leveraged long positions, severely impacting traders betting on a price increase. Similarly, Ethereum long positions worth $57.9 million were liquidated, with Ether’s price falling 4.5% to $3,145 during the sell-off.
Broader Market Declines
Other cryptocurrencies also experienced notable declines:
- Binance Coin: Fell 6% to $539.
- Solana: Dropped 10.3% to $136.
Factors Influencing the Market
The market downturn has been partly attributed to the anticipated repayments from the collapsed Japanese crypto exchange Mt. Gox. Starting in July, Mt. Gox is scheduled to distribute approximately $8.5 billion worth of Bitcoin to its creditors. Some analysts believe these repayments may not impact Bitcoin as significantly as feared, but the market remains cautious.
The dip in Bitcoin’s price has sparked increased activity on social media, with mentions of “buy the dip” doubling on platforms like Reddit, X, and 4Chan over the past two days. This trend indicates a growing interest among investors to capitalize on the lower prices.
