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Crypto liquidations spike hours before Bitcoin halving

Bitcoin's price slightly rebounds after liquidations, hours before the halving.

Chart displaying spikes in bitcoin liquidations and pricing volatility before 2024 halving event

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Liquidations in the wider cryptocurrency market have totaled over $290 million in the past 24 hours. Of that amount, around $154 million were long positions.

Bitcoin (BTC) liquidations surged to over $108 million as the price dropped below $60,000 but then rebounded. Liquidations were roughly split between longs and shorts, totaling just over $54 million and $53 million respectively, data from Coinglass indicates.

CoinGecko data indicates that there has been an increase of 5.3% in Bitcoin’s price over the past 24 hours to $64,739. The GM 30 Index, representing the top 30 cryptos, is up 4.46% to 129.97.

Bitcoin’s next halving event, when the miner block reward gets halved, is now less than 100 blocks away. A recent 21Shares report analyzed potential bitcoin price fluctuations from the event, considering geopolitical factors like Middle East conflicts. Analysts predicted BTC will likely continue moving sideways until more certainty on geopolitical issues.

Analysts from 21shares believe that if the geopolitical risks stabilize, Bitcoin would likely resume its upward trend post-halving. This analysis is based on the trend of institutional interest in digital assets induced by approval of spot crypto ETFs in the US, as well as the recently approved Bitcoin and Ethereum spots ETFs in Hong Kong. These events “set[s] the potential for bullish continuation” after the halving.

Coinbase analyst David Han noted macro factors, exacerbated by Middle East tensions, will likely drive crypto price action short-term even as fundamentals remain strong.

“The recent elevated correlation of altcoins against Bitcoin underlines this, indicating bitcoin’s anchor role in the space even as it firms its position as a macro asset,” Han noted.

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