Over the past day, the cryptocurrency market has seen major turmoil as Bitcoin saw its price drop below $65,000, leading to widespread liquidation.
This sharp decline wiped out approximately $565 million in market capitalization, impacting both long- and short-term traders.
Long-term traders lose more than $400 million
The decline in the cryptocurrency market caught bullish traders by surprise, resulting in losses of over $400 million for this group over the last day alone.
According to CoinGlass data, speculators saw a total loss of $565 million during this period. Long-term traders bore the brunt of the $438 million loss, while short traders faced a $126 million liquidation.
Notably, long-term Bitcoin traders took the biggest hit, losing $153 million, followed by Chainlink enthusiasts with losses of $94 million. Ethereum and Solana traders also lost more than $130 million combined.
These events affected over 200,000 traders, with over 50% trading on the Binance and OKX exchanges.
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This decline can be attributed to Bitcoin prices briefly falling below $65,000, its lowest level since early March. As a leading digital asset, BTC's price movements typically determine the course of the broader market. As a result, major cryptocurrencies such as Ethereum, Avalanche, BNB, Cardano, and Chainlink have seen significant price declines.
Meanwhile, many cryptocurrency analysts interpreted this decline as predictable market behavior. According to Rekt Capital, despite the introduction of spot Bitcoin exchange-traded funds (ETFs), the current bull market is still vulnerable to a pullback before the halving. These corrections typically occur 14 to 28 days before the Bitcoin halving.
Read more: Bitcoin price forecast 2024/2025/2030
Comparing previous cycles, the analyst notes that Bitcoin's current 11% pullback within 31 days of the halving is similar to previous patterns where corrections were as deep as 20% and 40% in 2020 and 2016, respectively.
“Bitcoin will fall deeply enough to convince you that the bull market is over. And then it will resume its uptrend,” Reckitt Capital concluded.
As such, the analyst warned that Bitcoin will enter the “danger zone” over the next three days and urged traders to be cautious.
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