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On July 4, Bitcoin momentarily dropped as low as $57,874 on Coinbase, the first time the commodity has dropped below the $58,000 mark in more than two months. Based on CoinMarketCap statistics, Bitcoin is down 3.17% for the week even if it has since steadied to trade at $58,842 at the time of publishing. Millions of leveraged long bets were destroyed during this downturn, therefore impacting traders hoping for a rise in the value of Bitcoin.
Effect on Broader Market and Long Positions
According to CoinGlass data, almost $54.9 million in Bitcoin long bets have been sold within the last 24 hours. With $57.9 million in ETH long positions sold during the same time, traders wishing to have long exposure to Ether ahead of the expected debut of several spot Ether ETFs also suffered large losses.
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The collapsed Japanese cryptocurrency exchange Mt. Gox, which is slated to make repayments of about $8.5 billion worth of BTC to its creditors beginning in early July, has been mostly blamed for the more general decline in Bitcoin’s price. Some experts, however, speculate that the effects of these paybacks could not be as severe as expected.
Altcoins Market Reaction and Social Media Opinion
The declining price of Bitcoin also caused significant sell-offs in other main cryptocurrencies and altcoins. Ether is down 4.5%; it dropped momentarily to $3,145 amid a strong sell-off around 2:00 am UTC on July 4. Dropping 6%, BNB went from $573 to $539. Solana has likewise erased much of its recent gains; from a weekly high of $154 to $136 at the time of writing, Solana dropped 10.3% in the previous 24 hours.
Among the market volatility, references to “buy the dip” have exploded on social media sites. Over Reddit, X, and 4Chan over the last two days, the word has doubled suggesting a rising attitude among traders and investors to take advantage of the current price declines.
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