Bitcoin’s price briefly dropped to $57,874 on Coinbase on July 4, marking the first time it has fallen below $58,000 in over two months. As of the time of publication, Bitcoin has stabilized at $58,964 but is still down 3.4% for the week, according to TradingView data.
The drop in Bitcoin’s price resulted in the liquidation of millions of dollars worth of leveraged long positions, causing losses for traders who were hoping for a price increase. Over $54.9 million in Bitcoin long positions were liquidated in the last 24 hours, as reported by CoinGlass.
Similarly, traders who were looking to gain long exposure to Ether (ETH) ahead of the launch of several spot Ether ETFs saw their positions wiped out. A total of $57.9 million in ETH long positions were liquidated in the last 24 hours.
The wider pullback in Bitcoin’s price has been attributed to the defunct Japanese crypto exchange Mt. Gox, which is set to begin repayments of approximately $8.5 billion worth of BTC to its creditors in early July. However, some analysts believe that the impact of these repayments on Bitcoin may not be as severe as others believe.
The drop in Bitcoin’s price also led to a sharp sell-off in other major and altcoins. Ether is down 4.5% and briefly fell to $3,145 on July 4. BNB is down 6%, dropping from $573 to $539, while SOL dropped 10.3% from a weekly high of $154 to $136.
Meanwhile, there has been a significant increase in mentions of “buy the dip” across social media platforms in the last two days, with the phrase doubling in usage across Reddit, X, and 4Chan in the same timeframe.
In Ethereum-related news, the recent pullback in its price is being seen as a potential opportunity for investment in the world of decentralized finance (DeFi).