Bitcoin’s value plunges below $60k as traders sell off $115m within 4 hours.
Bitcoin’s price has dropped below the $60,000 mark as the halving event approaches. According to data from CoinMarketCap, Bitcoin’s price has decreased by over 3% in the past 24 hours, currently trading at $59,800. The trading volumes for cryptocurrencies have also decreased by nearly 12% to $40 billion.
Traders are actively selling their positions, with over $115 million worth of assets being liquidated in the last four hours. Of this amount, $96.70 million were long positions and the remaining were short. The majority of these liquidations took place on the OKX crypto exchange, totaling $43.81 million.
The upcoming BTC halving, which will occur in a few days, has led traders to potentially exit their positions in anticipation of the event. The halving will reduce miner rewards by 50%, limiting the number of coins being introduced to the market. This feature is viewed optimistically by some Bitcoin supporters.
In addition to the halving, Bitcoin has experienced increased volatility in the lead-up to the event. This volatility is not solely attributed to the halving, but also to investors withdrawing funds from popular Bitcoin ETFs. This trend was sparked by comments from U.S. Federal Reserve Chairman Jerome Powell, who stated that the central bank needs to see more progress on the inflation front before considering rate cuts.
Markus Thielen, head of research at 10x Research, highlights that crypto miners started accumulating Bitcoins in January 2024 to create an imbalance between supply and demand. This resulted in a sharp increase in BTC’s price, reaching its historical peak in March.
On the other hand, digital asset mining companies will gradually sell off their accumulated coins after the halving, which will put pressure on the price of cryptocurrencies.
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