Crypto Market in Panic as Bitcoin Drops to $65,000, Wiping $565 Million

Over the past day, the cryptocurrency market experienced substantial turmoil as the price of Bitcoin fell below $65,000, triggering a widespread sell-off.

This sharp drop wiped out almost $565 million in market value, affecting long and short traders.

Long-term traders lose more than $400 million

The slowdown in the cryptocurrency market took bullish traders by surprise, resulting in losses exceeding $400 million for this cohort in the last day alone.

According to data from CoinGlass, price scalpers suffered a total loss of $565 million during this period. Long traders bore the brunt of losing $438 million, while short traders faced a $126 million liquidation.

In particular, long Bitcoin traders suffered the most significant hit, losing $153 million, followed by Link of the chain enthusiasts with 94 million dollars in losses. Ethereum and Solana Traders also lost more than $130 million combined.

These events affected more than 200,000 traders, of which more than 50% were listed on binance and OK exchanges.

Read more: Top 10 Crypto Exchanges and Apps for Beginners in 2024

Crypto market liquidation. Fountain: glass coin

This drop can be attributed to Brief drop in Bitcoin price to less than $65,000, its lowest level since early March. As a leading digital asset, BTC price movements They tend to dictate the broader trajectory of the market. Consequently, major cryptocurrencies such as Ethereum, avalancheBNB, Cardano, and Chainlink all experienced major price drops.

Meanwhile, several crypto analysts have interpreted this decline as predictable market behavior. According to Rekt Capital, despite the introduction of Spot Bitcoin Exchange Traded Funds (ETFs), the current bull market remains susceptible to a pre-halving pullback. These setbacks usually occur between 14 and 28 days before the Halving Bitcoin.

Read more: Bitcoin Price Prediction 2024/2025/2030

Bitcoin price prediction
The historical setbacks prior to the Bitcoin halving. Fountain: Capital Rekt

Comparing previous cycles, the analyst notes that BTC's current 11% pullback within 31 days after the halving resembles past patterns where pullbacks were 20% and 40% deep in 2020 and 2016, respectively.

“Bitcoin will pull back enough to convince you that the bull market is over. And then it will resume its upward trend”, Rekt Capital concluded.

As such, the analyst warned that BTC would enter the “Danger Zone” in the next three days and urged traders to be cautious.

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