76% of Bitcoin Holders in Profit Despite Over $290M in Liquidations

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This increase in liquidations highlights the growing volatility and risks currently affecting the cryptocurrency market.

Crypto market liquidations reached their highest level in a week on Wednesday, driven by Bitcoin’s drop below $60,000. According to CoinGlass data, over 108,293 traders faced liquidations totaling $295.82 million. This surge in liquidations underscores the heightened volatility and risks currently present in the cryptocurrency market.

Despite the significant liquidations, on-chain data from IntoTheBlock shows that 76% of Bitcoin addresses remain profitable. Conversely, 16% of addresses are holding their coins at a loss, and only 8% bought Bitcoin at prices close to its current trading level. This indicates that the majority of Bitcoin holders are still in a favorable position despite recent market fluctuations.

Factors Contributing to Market Volatility

Recent volatility in the cryptocurrency market has been driven by multiple factors, including U.S. monetary policy concerns, geopolitical tensions, and the upcoming U.S. presidential election in November. Notably, a significant behavioral change among long-term Bitcoin holders has emerged. In May 2024, these investors sold approximately $10 billion worth of Bitcoin, equating to around 160,000 BTC. This large-scale sell-off is a marked departure from the typical behavior of long-term holders, who usually avoid such substantial liquidations.

Bitcoin’s price experienced a notable decline, falling from about $62,200 to an intraday low of $59,425 before recovering slightly to just above $60,200. Bitcoin is trading at $58,487, marking a 4.7% decline over the past 24 hours.

Ethereum also saw a significant drop, decreasing by 5.5% from $3,384 to $3,198. It is down 5% over the past week, erasing most gains made in anticipation of the spot ETF launch. Solana fell roughly 11% to $134, marking the steepest decline among the top 10 cryptocurrencies. This drop came after increased interest sparked by VanEck, a New York-based investment management firm, filing for the first Solana spot ETF late last month.

Overall, major cryptocurrencies have experienced declines over the past month. Ethereum is down over 15% in the last 30 days, despite growing interest in Ethereum spot ETFs. Some analysts predict these new financial products could start trading by mid-July, potentially boosting ETH prices. Bitcoin has also fallen 14.8% during the same period, reflecting broader market challenges.