Cryptocurrency markets started May's new month in the red, with Bitcoin prices falling below $56,500, a two-month low.
This decline extends the downward trend from April, making it the most difficult month for Bitcoin since the November 2022 crash triggered by the collapse of the FTX exchange.
red market
according to crypto slate According to the data, the price of Bitcoin has fallen by about 8% in the past 24 hours, but has rebounded slightly to $57,115 at the time of writing.
Bitcoin's decline reflects broader market trends, with major cryptocurrencies such as Solana, Ethereum, Cardano, and Avalanche each suffering losses of more than 7% during this period.
During this period, Polkadot's DOT token stood out among the top 20 cryptocurrencies by market capitalization, registering a modest increase of 0.41%.
Analysts attribute this market move to a hawkish policy shift in the US and waning interest in the Spot Bitcoin ETF despite its recent launch in Hong Kong.
However, Markus Thielen, head of research at 10x Research, highlights a distinctive aspect of this market correction.he Said:
“This adjustment is very different because institutional investors have a different risk management approach than most individual traders. Based on our estimates, the average entry price for Bitcoin ETF holders in the US is around $57,300 and could be 1-2% higher, and Bitcoin prices are rapidly approaching that level.”
Traders were liquidated for more than $450 million
The market rut resulted in the liquidation of more than $450 million worth of positions held by 133,000 traders, according to Coinglass data.
According to a breakdown of the liquidations, long traders who had bet on rising prices were hit the hardest, losing about $390 million. Meanwhile, short traders who had a more pessimistic view of the market were liquidated for $65 million during the same period.
Bitcoin traders suffered the most losses totaling $163 million, of which $142 million was from long traders and $20.95 million from short traders. Ethereum followed suit, with around $115 million worth of liquidations.
Notably, the single largest liquidation took place on OKX and included $6.07 million worth of ETH-USDT trades.
Traders speculating on the prices of Solana and Dogecoin also suffered double-digit liquidations totaling about $17 million and $15 million, respectively.
At the time of writing, Bitcoin is attempting to recover and is trading around $57,500. However, low liquidity and abundant short leverage continue to suppress prices.
