Bitcoin Price Dips Below $64,000 Amid $209 Million Crypto Longs Liquidation

Bitcoin's price fell below $64,000 on Thursday morning, triggering the liquidation of over $209 million in crypto long positions as the market experienced a downturn overnight.

According to Tradingview data, Bitcoin is currently trading around $63,700, marking a 4% decrease for the day.

The broader crypto market followed suit, with the total market capitalization of all cryptocurrencies declining by 4.7% overnight. Ethereum, the second-largest cryptocurrency by market cap, mirrored Bitcoin's drop, falling by 5.3% in the past 24 hours to approximately $3,090.

Among the top 10 cryptocurrencies, Toncoin (TON) suffered the most significant decline, plummeting by 10.1% over the past day to reach a trading price of $5.21.

The market downturn resulted in the liquidation of over $209 million in crypto long positions, as reported by CoinGlass data. Notably, Bitcoin longs accounted for over $52 million of the liquidated positions. Longs are derivative contracts that allow investors to speculate on an asset's price increase; liquidation occurs when a long position fails, resulting in the closure of the trader's position.

The decline coincides with a halt in inflows into BlackRock's spot Bitcoin ETF, ending a streak of 71 consecutive days of inflows, the longest such streak since 2004, according to CoinGlass data. Bitcoin spot ETFs saw outflows of $120.6 million after three consecutive days of inflows.

Hong Kong's approval of spot Bitcoin and Ethereum ETFs, with trading set to commence on April 30, also impacted the market. Analysts anticipate potential inflows of up to $25 billion into the crypto market, should these ETFs become accessible to mainland Chinese investors.

Over the weekend, Bitcoin underwent a halving event, reducing miner rewards by half. While historically bullish in the long term, halvings often result in short-term losses. Since reaching a high of $65,230 on the halving day, Bitcoin has declined by 2%, dropping below $64,000.

In tandem with the halving, a new Bitcoin token standard called Runes was introduced. These tokens, akin to meme coins for Bitcoin, dominated the network, constituting over 81% of transactions on Tuesday.