Crypto sees 130% jump in liquidations as BTC dives below $58k

Crypto prices continued to see negative action on Thursday as Bitcoin fell to below $58,000 and Ethereum struggled near $3,100.

The result was a 4.5% dip in the total crypto market cap, which stood around $2.15 trillion at the time of writing. Meanwhile, traders betting on upside momentum felt the pain as liquidations mounted.

Bitcoin, Ether liquidations surge

According to data from Coinglass, total 24-hour crypto liquidations jumped more than 130% as Bitcoin dived towards the $58k mark.

In this time frame, sharp price declines across the market saw over 107,046 traders liquidated, with total liquidations reaching $293 million around 10:30 CET.

Data showed liquidated long positions were more than $263 million, while short liquidations stood at $30 million. Among the top coins, Bitcoin liquidations in the past 24 hours reached $85 million - $73 million in long positions and $12 million in shorts. Bitcoin also witnessed the largest single liquidation order of $10.49 million order on Huobi.

On the other hand, Ethereum recorded more than $67 million in total liquidations in the same period, with longs accounting for over $61 million of this and shorts just over $6 million.

Solana, Worldcoin, Dogecoin, LayerZero and Pepe also accounted for huge liquidations, most of which were long positions.

Market uncertainty and BTC sell-off

The current crypto market outlook is largely a reflection of investor uncertainty. Recent remarks by Fed Chair Jerome Powell about US inflation and interest rates cuts spooked some investors.

Meanwhile, BTC price is likely weighed down by the Mt.Gox repayments and continued selling by government linked wallets and whales.

Both the US and Germany government wallets have sold BTC in recent weeks. On-chain data tracked by blockchain security and intelligence firm Arkham shows that on July 4, the German government wallet sent another 1,300 BTC worth $75.53 million to Bitstamp, Coinbase and Kraken crypto exchanges.

Spot On Chain also highlighted a whale deposit to Binance, with 1,700 BTC worth $99.9 million moved to the exchange on Thursday.

Despite the increased selling, analysts are bullish on a market bounce, with QCP Capital noting that “liquidation clusters on BTC and ETH are heavily skewed to the topside.”

According to the Singapore-based trading desk, this could result in a potential short squeeze. Also notable are the S-1 Form approvals for spot Ethereum ETFs, which could see ETH price bounce.