Over $313 million in leveraged positions have been liquidated in the past 24 hours.
Cryptocurrency markets fell on Monday morning after weekly net outflows from digital investment products hit $584 million, bringing the total over the past two weeks to more than $1.1 billion.
Bitcoin fell 5% to below $61,000, Ethereum dropped nearly 6%, Solana fell 4% and Polkadot dropped 2%.
According to data from CoinGlass, 92,311 traders were liquidated for a total of $313 million in the past 24 hours, with the largest single liquidation occurring on Binance, at $15.36 million, involving the BTC-USDT pair.
Global exchange-traded fund (ETF) trading volume hit $6.9 billion per week, the lowest since the U.S. spot Bitcoin ETF launched in January, according to a new report from CoinShares.
“We believe this is a response to investor pessimism about the prospect of the Fed cutting interest rates this year,” said James Butterfill, head of research at CoinShares, who added that the ongoing outflows indicate “a real correction is underway.”
Michael van de Poppe, CEO of MN Trading, believes the correction is news-driven for Bitcoin and altcoins.
“It's probably because of the Mt Gox news. Repayments start in July,” he said. “The market has fallen a lot, but this event is likely being overvalued out of fear. It may be the bottom.”
Mt. Gox, once the largest bitcoin exchange, suffered a massive breach in 2014, losing 850,000 bitcoins belonging to 240,000 users. In September 2023, the trustee announced that creditors would receive partial repayments of 142,000 BTC, 143,000 BCH, and fiat currency totaling $510 million by October 2024.
Mt. Gox users will begin receiving repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) from early July.
U.S. stock markets were relatively subdued, with the S&P 500 up 0.3% and the Nasdaq down 0.4%. The Dow Jones Industrial Average rose about 1%, according to Yahoo Finance data.
Personal consumption expenditures data for May, the Federal Reserve's preferred inflation gauge, is due to be released on Friday.
