Bitcoin plunged to a three-month low — crypto traders lost nearly $2 billion in a day
Kyiv • UNN
Bitcoin fell to $63,311, while Ethereum dropped to $1,731. Positions worth nearly $1.9 billion were liquidated within 24 hours.
Bitcoin fell to its lowest level in the past three months amid mass liquidations of trading positions in the cryptocurrency market. The value of the world's largest cryptocurrency dropped to $63,311, while the total volume of liquidations over 24 hours approached $1.9 billion. Bloomberg reports this, citing market data, writes UNN.
Details
On Saturday, November 14, bitcoin fell by 5.7%, and during Asian trading on Sunday it continued to decline by another 1.7%. Prices reached their lowest level since August 17.
Ethereum, the second-largest cryptocurrency by market capitalization, also suffered significant losses. Its value fell to $1,731—the lowest level since July 9.
According to the analytical platform Coinglass, over a 24-hour period, cryptocurrency exchanges recorded liquidations of positions worth approximately $1.9 billion. Of this amount, $684 million involved bitcoin and $466 million involved Ethereum. The overwhelming majority were traders' long positions, based on expectations of rising prices.
Why the cryptocurrency market is falling
Rich Rosenblum, co-founder of cryptocurrency firm GSR, attributed the crash to technical factors. According to him, after bitcoin fell below its 200-day moving average at around $73,000, a wave of forced liquidations began.
Additional pressure is being created by expectations of high interest rates, capital outflows from U.S. bitcoin ETFs, and the consequences of the recent hack of Binance.
From October 30 to November 13 alone, investors withdrew nearly $3 billion from spot bitcoin ETFs in the United States. Overall, since October 21, the cryptocurrency has lost about 25% of its value.
At the same time, Rosenblum suggests that bitcoin is approaching a technical bottom, as current prices are near support levels that have held the market over the past year.