Bitcoin Hits a Two-Month Low: What Happened?
On Thursday, Bitcoin, the world’s leading cryptocurrency by market cap, plummeted to a two-month low, aligning with sharp declines in traditional equities and even precious metals like gold and silver. According to CoinGecko, Bitcoin was trading around $84,400, a 5% drop over the past day, while other cryptocurrencies, including Ethereum and Solana, saw even steeper losses, falling 6.4% and 6.8%, respectively.
Crypto Market Shake-Up: Over $800M Liquidated
The crypto market faced significant turbulence, with CoinGlass reporting that over $800 million worth of leveraged positions were forcibly liquidated in the past 24 hours. Astonishingly, $700 million of these losses came from long positions. Notably, a $31 million single position was wiped out on the Hyperliquid platform, showcasing the volatility and risks associated with leveraged trading.
Traditional Markets Follow Suit
The turbulence wasn’t limited to the crypto world. Gold, which recently hit $5,600 per ounce, slid down by 0.6%, trading at $5,300. Silver followed suit, dropping 0.8% to $112 per ounce. Meanwhile, Microsoft shares plunged more than 12%, with investors reacting to a slowdown in the company’s cloud sales despite surpassing earnings expectations. The tech-driven Nasdaq Composite fell by over 2%, erasing much of its gains for the year.
Geopolitical Tensions Add Fuel to the Fire
Amid market turmoil, rising geopolitical tensions between the U.S. and Iran added more uncertainty. President Donald Trump hinted at a military operation via his Truth Social platform, stating, “A massive armada is heading to Iran. It is moving quickly, with great power, enthusiasm, and purpose.” Such geopolitical instability often exacerbates market volatility.
Spotlight on Bitcoin ETFs
Another factor impacting Bitcoin prices is the recent performance of exchange-traded funds (ETFs). As noted by Wintermute’s head of OTC Jake Ostrovskis, Bitcoin ETFs have experienced significant net outflows over the past two weeks, bleeding nearly $1.8 billion. These funds, while instrumental in sustaining Bitcoin prices, are currently not enough to counterbalance the sustained sell-off pressure.
What’s Next for the Crypto Market?
While the current drops have alarmed investors, experts recommend taking a cautious approach and diversifying portfolios. For those seeking to capitalize on Bitcoin market dips, trading on reliable platforms is critical. Additionally, keeping an eye on global economic factors, ETF performance, and geopolitical developments is essential for making informed trading decisions.
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In volatile times, ensuring the security of your crypto assets is more crucial than ever. The Ledger Nano X is a highly secure hardware wallet trusted by investors worldwide. With top-tier encryption and Bluetooth functionality, it’s the perfect solution for managing your Bitcoin and other cryptocurrencies safely.
