Bitcoin drops to $55,000 as liquidations top $600 million

The price of the world’s largest crypto by market cap has fallen to its lowest point since February, triggering a flood of liquidations worth hundreds of millions of dollars.

As a result, liquidations of long positions, or expectations that prices will rise, have risen to more than $500 million in the past 24 hours, according to data from CoinGlass.

That’s the biggest single-day wipeout for the crypto market since mid-April. Another $80 million in short positions has also been liquidated.

It comes as the price of Bitcoin fell to as low as $55,000 on Thursday evening. The asset has since clawed back some losses to around $55,550, CoinGecko data shows.

Bitcoin has struggled to climb back above $60,000, plagued by a lack of investor confidence and concerns surrounding a $2.7 billion transfer from bankruptcy firm Mt. Gox’s cold storage to an unidentified wallet.

Ethereum, the world’s second-largest cryptocurrency, also fell more than 4% to below $3,000, the first time since May 17.

Uncertainty over the US Federal Reserve’s ability to get inflation under control this year is having implications for risk assets, including crypto.

As a result, crypto prices may still remain under pressure, with experts predicting a further drop in Bitcoin towards $52,000. Decipher Previously reported.

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