"Hmm, how far can BTC go down? Is 50K impossible?”
Bitcoin's (BTC) hemorrhaging to $61,556 has led cryptocurrency futures traders who bet on higher prices to experience more than $440 million in liquidations, with some expecting the digital asset to hit $55,000 in the short term.
The data shows that most of the liquidations happened on Binance which is $212 million followed by OKX at $170 million and it should be known that longs bets on BTC suffered a loss of about $100 million only.
Not only that, a record high outflow of $640 million also occurred from the Grayscale Bitcoin Trust ETF (GBTC) and inflows into other products of just under $500 million have seen the crypto market witness a net outflow of $15 million in the last two days.
Liquidations also occur when crypto exchanges forcibly close a trader's leveraged position following the loss of part or all of the trader's initial margin, so here it can be seen that traders are unable to meet the margin requirements for their leveraged positions.
According to John Glover, Head of Investment Office Ledn said that BTC may continue to decline to $62,000 or $55,000 before the next round but at the same time he still has a long-term bullish outlook.
In addition, the decline in BTC prices was also triggered by the Bank of Japan (BOJ) raising its benchmark interest rate above zero on Tuesday yesterday ending eight years of sub-zero borrowing costs without causing panic in financial markets.
Further monetary tightening by the BOJ could bring pain to risky assets such as crypto as Japanese investors have for years been among the world's biggest exporters of capital holding more than $1 trillion in treasuries and half a trillion euro zone bonds.
As of this writing, BTC price has plunged by 6.92% to $63,042 in the last 24 hours with a market capitalization of over $1 trillion and has recorded a plunge of 11.84% over the past week.
