Bitcoin’s price briefly dipped to $57,874 on Coinbase on July 4, marking the first instance in over two months that the cryptocurrency fell below the $58,000 mark. The sudden dip comes amid a wider sell-off in the crypto market which saw $54.9 million in Bitcoin long positions liquidated in 24 hours. Despite this, the price of Bitcoin has since fairly stabilized and was trading at $58,964 at the time of writing, although it has still seen a 3.4% drop within the week.
The unravelling of several leveraged long positions also impacted traders hoping for a surge in Bitcoin prices. CoinGlass data revealed that in the past 24 hours, long positions totaling more than $54.9 million were liquidated. Those who looked to gain from Ether’s long exposure in anticipation of the launch of multiple spot Ether ETFs suffered similar losses, with $57.9 million in ETH long positions liquidated within the same frame.
Analysts are attributing much of this extensive pullback in Bitcoin’s price to the defunct Japanese cryptocurrency exchange, Mt. Gox. The platform is set to begin repayments of approximately $8.5 billion worth of Bitcoin to its creditors starting in early July, which many believe may have influenced the crypto market’s dip. However, some experts contend that these repayments may not significantly impact Bitcoin as much as others theorize.
The broader crypto market also saw significant selling during the dip with major and altcoins experiencing notable losses. Ether was down 4.5%, momentarily dipping as low as $3,145. BNB fell 6%, dropping from $573 to $539. Solana too saw a decrease of 10.3% within the past 24 hours. Despite this downturn, “buy the dip” mentions have reportedly surged on social media platforms such as Reddit and 4Chan in the past two days, signaling that some investors may see this as an opportunity to buy cryptos at a lower price.