On July 4th, the cryptocurrency market witnessed a significant event as the value of Bitcoin (BTC) momentarily plunged to $57,874 on Coinbase. This marked the first occasion in over two months that Bitcoin’s price fell beneath the $58,000 threshold. Following this dip, Bitcoin’s price stabilized, trading at $58,964 at the time this article was written, although it has experienced a 3.4% decrease over the past week, according to TradingView data.
The downturn in Bitcoin’s value coincided with the liquidation of leveraged long positions amounting to millions of dollars, which adversely affected traders who were optimistic about a rise in Bitcoin’s price. CoinGlass data reveals that Bitcoin long positions exceeding $54.9 million were liquidated within a 24-hour period.
In a similar vein, traders who were anticipating to profit from long positions in Ether (ETH) in the lead-up to the anticipated launch of multiple spot Ether ETFs, expected as early as mid-July, also faced the liquidation of their positions. The total value of liquidated ETH long positions in the last 24 hours amounted to $57.9 million.
The broader decline in Bitcoin’s price has been attributed to the infamous Japanese cryptocurrency exchange Mt. Gox, which is set to commence the repayment of approximately $8.5 billion worth of BTC to its creditors starting early July. Nonetheless, some analysts are of the opinion that the repayments may not have as catastrophic an impact on Bitcoin’s value as some might expect.
The sharp drop in Bitcoin’s price below $58,000 also led to a sell-off in other major cryptocurrencies and altcoins. At the time of writing, Ether had decreased by 4.5%, briefly touching a low of $3,145 during a steep sell-off at 2:00 am UTC on July 4. Binance Coin (BNB) saw a 6% decline, dropping from $573 to $539. Solana (SOL) also experienced a significant reduction in its recent gains, with a 10.3% decrease in the last 24 hours, falling from a weekly peak of $154 to $136.
Concurrently, the phrase “buy the dip” has seen a surge in mentions across various social media platforms over the past two days, with its usage doubling on Reddit, X, and 4Chan during the same period.
In the X Hall of Flame, the recent downturn in Ethereum’s value is being viewed as an opportunity — a sentiment echoed by Dynamo DeFi.