Bitcoin Price Dips to $64,000, $220M in Long Positions Liquidated

Bitcoin Price Drops to $64,000, $220 Million in Long Positions Liquidated

Bitcoin (BTC) fell sharply on Wednesday, falling more than 3% to $64,000. Long-term liquidations in the crypto market rose to $220.7 million in the past 24 hours, according to CoinGlass data. The steep decline coincided with broader market losses in the Nasdaq 100 index, which fell 3.65% in its sharpest decline since October 2022.

Additionally, $32 million worth of short positions were liquidated. The majority of these liquidations were concentrated in Ethereum, which accounted for $17.5 million, followed by Bitcoin with $14.8 million. Meanwhile, the price of Ethereum has fallen by about 8.6% in the past 24 hours after spot Ethereum ETFs were launched on Tuesday. ETH is currently trading at $3,159.

Analysts have linked Bitcoin’s performance to that of tech stocks, citing a variety of factors including the changing political climate in Washington and optimistic bets on U.S. spot Ethereum exchange-traded funds.

Despite the short-term losses that surprised many investors, some analysts remain optimistic about the potential for upward momentum in the coming months. “We maintain a positive outlook on Ethereum,” Singapore-based crypto trading firm QCP Capital wrote in a note on Tuesday, just a day before Bitcoin’s decline. “Bitcoin reaching an all-time high two months after an ETF launch sets a compelling precedent. Anticipating sustained institutional interest, ETH’s price trajectory could gradually converge to its previous all-time high.”

The recent sell-off in tech stocks was reportedly triggered by earnings reports from major companies, including Google parent Alphabet Inc., that revealed higher-than-expected capital expenditures. Alphabet’s stock fell more than 5% as a result, its worst performance since January. Tesla also fell significantly by more than 12%, while shares of Nvidia, a pioneer in artificial intelligence, fell 6.8%.