Summary:
- Bitcoin falls from $65,500 to $64,000 during Asian trading hours.
- Over $250 million in bullish bets liquidated.
- Broad-based CoinDesk 20 Index falls by 3.3%.
Bitcoin (BTC) experienced a sharp decline of over 3% at the start of Asian trading hours, reflecting a broader stock market rout and weakening sentiment for risk assets, including cryptocurrencies. The cryptocurrency fell from over $65,500 to nearly $64,000 within minutes as Tokyo markets opened. This sudden plunge led to the liquidation of over $250 million in bullish bets, marking the worst hit since early July.
Liquidations occur when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This data is valuable for traders as it indicates leverage being effectively washed out from popular futures products, serving as a short-term signal of a decline in price volatility.
The broad-based CoinDesk 20 (CD20), a liquid index tracking the largest tokens by capitalization minus stablecoins, also fell by 3.3%.
Despite the downturn, Marathon Digital (MARA), one of the largest Bitcoin miners, announced the purchase of $100 million worth of BTC in the open market and stated that it would readopt its strategy of holding all mined Bitcoin on its balance sheet.-
As of this writing, Bitcoin is trading at $66,000 during Asian morning hours.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
