CRYPTO — Is Bitcoin’s Plummet To $7k After Reaching $64k Causing Over 600m Crypto Liquidations?

Do not value money for any more nor any less than its worth; it is a good servant but a bad master. — Alexandre Dumas

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CRYPTO — Does Blackrock Bitcoin ETFs Volume Break Records Amidst Bitcoins Surge To $64k, Only To…

In the latest roller-coaster episode of the cryptocurrency market’s turbulent journey, Bitcoin’s abrupt plummet from a staggering $64,000 high to $59,000 has sent shockwaves through the entire digital assets sector. The CoinDesk data has captured this tumultuous turn of events, recording a nearly 5% drop in the CoinDesk 20 Index, following the sudden reversal of Bitcoin’s fortunes. This breathtaking rally and subsequent dive not only wreaked havoc on leveraged traders but also triggered a massive $700 million in crypto liquidations over the past 24 hours, as per CoinGlass data.

Bitcoin’s stunning ascent earlier in the day, surpassing the $60,000 mark for the first time since November 2021, only to nosedive to $59,400, represents a stark reminder of the inherent volatility and unpredictability of the crypto market. After briefly bouncing back to over $61,000, Bitcoin found itself once again teetering around this price level. This dramatic turn of events was not isolated to Bitcoin alone, as the broader digital assets market bore the brunt of this upheaval, with major cryptocurrencies such as Ethereum, Solana, XRP, Cardano, Dogecoin, and Avalanche witnessing significant price declines ranging from 4% to 9% within a single hour.

The aftermath of this price plunge materialized in the form of extensive liquidations, signifying a widespread wiping-out of leveraged derivatives trading positions across all digital assets. When traders fail to meet margin requirements or lack the necessary funds to sustain their trades, exchanges step in to close these leveraged positions, resulting in liquidations. As a result, Wednesday’s episode of market turmoil is believed to mark one of the most substantial liquidation events since last August, when Bitcoin’s abrupt drop to $25,000 liquidated $1 billion of derivatives positions across all crypto assets. This time, the impact was felt across both long and short positions, underscoring the far-reaching consequences of the market’s erratic behavior.

Adding to the chaos, U.S.-listed spot Bitcoin exchange-traded funds (ETFs) also experienced record-breaking trading volumes, with BlackRock’s IBIT witnessing a staggering $3.3 billion of shares traded, more than double the previous day’s record. In the midst of this digital asset market mayhem, some users reported seeing zero balances in their Coinbase accounts, a situation that has since been addressed by the company.

It’s important to note that CoinDesk is a reputable and award-winning media outlet with its own set of rigorous editorial policies and standards. CoinDesk remains an independent subsidiary even after being acquired by the Bullish group, which is majority-owned by Block.one. Both companies have vested interests in various blockchain and digital asset businesses, emphasizing the importance of journalistic independence and integrity.

The overall implications of Bitcoin’s sudden plummet and the resulting market mayhem provide a stark reminder of the inherent volatility and unpredictability of the cryptocurrency market. As the sector continues to evolve and mature, such episodes serve as critical lessons for traders, investors, and market participants. Ultimately, they underscore the importance of exercising caution and prudence in navigating the crypto market’s roller-coaster ride.

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