Bitcoin price slides below $67,000, triggering a spike in long liquidations

Bitcoin BTC -4.21% long liquidations have surged over the past 24 hours, as the price of the largest cryptocurrency by market capitalization dropped below the $67,000 mark.

There were over $68 million in bitcoin long liquidations across centralized exchanges in the past 24 hours, out of a total of $75 million in liquidated BTC positions, according to data from Coinglass. The broader cryptocurrency market saw over $167 million in total liquidations in the same period, with around $143 million in long positions.

Traders of ETH, the second-largest cryptocurrency by market capitalization, also faced substantial liquidations on leveraged positions across exchanges, with over $40 million liquidated, of which over $33 million were long positions.

Liquidations occur when a trader’s position is automatically closed due to insufficient funds to sustain it, typically resulting from a price surge in a specific direction that depletes their initial margin or collateral.

US government Silk Road bitcoin transfers

In addition to the overhang from payouts to creditors of the now-defunct Mt. Gox cryptocurrency exchange, the recent downturn came after significant transfers of bitcoin from a wallet reportedly belonging to the U.S. government.

On Monday, a wallet labeled as belonging to the U.S. government transferred $2 billion worth of bitcoin to an unidentified wallet, according to Arkham Intelligence data .

The nearly 28,000 bitcoin, valued at over $2 billion, appears to be tied to funds the U.S. Department of Justice previously confiscated from the now-defunct dark web market Silk Road. 

Indicators of potential upside for bitcoin

Bitcoin is currently trading at $66,735, down almost 4% in the past 24 hours, according to The Block’s price page . However, BRN lead analyst Valentin Fournier views the recent price correction positively, stating that "this consolidation phase can provide a stronger foundation for a future rally."

Speaking to The Block, Fournier cited macro catalysts that suggest room for further growth for bitcoin. "A confluence of bullish factors continues to support the cryptocurrency's upward trajectory. Anticipated interest rate cuts, growing institutional adoption, the increasing interest of developed countries for holding bitcoin as a reserve asset and a strong U.S. economy are all contributing to a favorable market environment," he added.

Bitcoin’s market dominance stands at 52.5%, while ether’s dominance is at 16%, according to Coingecko data . The global cryptocurrency market cap has decreased by around 3.2% in the past day, now standing at $2.51 trillion.