Bitcoin’s price fell sharply and touched a two-month low of $25,300. It led to $1 billion worth of liquidations across the crypto market. Bitcoin slightly rebounded and is trading at $26,302 at writing time. The last time Bitcoin was this low was in mid-June.
According to Coinglass data, liquidations worth over $821 million occurred in the past 24 hours on Thursday. Most of the liquidations occurred on bitcoin and ether trades, with bitcoin accounting for roughly half of it. In a rush to exit, BTC lost over $472 million and ETH $302 million of long positions – trades that bet on the prices to rise, media reports said.
The last time the prices fell to this level was immediately after the Securities and Exchange Commission (SEC) sued Binance and Coinbase. However, the crypto prices rebounded when BlackRock filed a spot Bitcoin ETF application with the SEC.
Thursday’s total number of liquidations surpassed 164,000, with an ETH-BUSD trade worth $55.92 million on Binance being the largest.
The sell-off seems triggered by multiple factors, including the news that Elon Musk’s SpaceX sold its bitcoin holdings and wrote down its value by $373 million. Chinese economic worries, crumbling foreign currencies, and bond yields rising to multi-year highs are among the other concerns that led the crypto market to fall.