BTC records drastic drop to $54,300, most altcoins see dips
Bitcoin recorded a decline of 8.15 percent in the past 24 hours on Friday, July 5. Bitcoin is currently trading at $54,300 (roughly Rs. 45.3 lakh) on international exchanges like CoinMarketCap. This is a drop of $6,527 from the price of $60,827 (roughly Rs. 50.7 lakh) that BTC was trading at 48 hours ago. Meanwhile, Bitcoin is trading at $60,817 (roughly Rs. 50.7 lakh) on Indian exchanges like Unocoin and WazirX.
Ether followed BTC on the price chart and posted losses. At the time of writing, ETH was trading at its three-month low of $2,887 (around Rs. 2.4 lakh) on international exchanges. Gadgets360’s crypto price tracker showed ETH trading at around $3,234 (around Rs. 2.7 lakh) on Indian exchanges like WazirX. On foreign and domestic exchanges, ETH has registered a price drop of around 11 percent in the past 24 hours.
The main factor causing top crypto assets to record major price drops is the wave of liquidations that has hit the crypto market. According to data by CoinGlassA total of 234,518 traders liquidated $679.38 million (approximately Rs. 5,672 crore) in the past 24 hours.
Crypto liquidation refers to the process of forcibly closing a trader’s positions in the market because the trader’s margin account can no longer support their open positions. This happens when the trader does not have enough margin to meet maintenance requirements, CoinGlass explained.
“With 3 major supply gluts (Mt. Gox, the US and German governments) currently unloading on the BTC markets, expected selling pressure has driven prices of the largest crypto asset lower. With BTC prices dropping below the 200-day SMA line for the first time since October 2023, it has sent shockwaves through the broader markets, with altcoins down 10-20 percent,” the CoinSwitch Markets Desk told Gadgets360.
On Friday, Dogecoin, Avalanche, Shiba Inu and Polkadot followed BTC and ETH, mirroring price drops on the crypto charts.
Litecoin, Polygon, Stellar and Cosmos also saw no relief from the market pressure and posted losses.
“Such movements usually provide opportunities, especially for scalpers, to reclaim their liquidated trades,” said Avinash Shekhar, CEO and co-founder of Pi42.
The total crypto market capitalization fell by 8.32 percent in the past 24 hours. For the first time this year, the crypto sector’s valuation fell to $1.99 trillion (approximately Rs. 1,66,17,286 crore), showing MintMarketCapAbout 48 hours ago, the market cap of cryptocurrencies stood at $2.26 trillion (approximately Rs. 1,89,22,176 crore).
“Today’s US unemployment rate announcement will be crucial and could lead to more volatility in the market,” CoinDCX told Gadgets360.
Meanwhile, the small group of altcoins that managed to maintain gains on the price chart consists of Leo, DogeFi, and Bitcoin Hedge.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information contained in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.
