Bitcoin Plunges Below $63K, Liquidating Over $200M in Crypto Bets

Bitcoin's value plummeted below $64,000 on Thursday, losing 4% daily. The wider crypto market also declined, with over $209 million in crypto long positions liquidated. The downturn coincides with the end of a 71-day inflow streak into BlackRock's spot Bitcoin ETF and the recent Bitcoin halving event. Despite Hong Kong's approval of spot Bitcoin and Ethereum ETFs, the market continues to experience short-term losses.

Bitcoin Slumps to $63,000, Liquidating Over $209 Million in Crypto Positions

In a sudden market reversal, Bitcoin (BTC) plummeted below $64,000 on Thursday morning, triggering a massive liquidation of over $209 million in crypto long positions. According to CoinGecko data, Bitcoin currently trades around $63,700, representing a 4% decline on the day.

The broader crypto market followed suit, with the combined market cap of all cryptocurrencies experiencing a 4.7% overnight drop. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, mirrored Bitcoin's fate, losing 5.3% over the past 24 hours, hovering around $3,090.

Among the top 10 cryptocurrencies, Toncoin (TON) suffered the most significant dip, plummeting 10.1% over the past day, currently trading at $5.21.

CoinGlass data reveals that the market decline triggered over $209 million in crypto long position liquidations, with $52 million of those being Bitcoin longs. Long positions represent derivative contracts enabling investors to wager on asset price increases. When a long position liquidates, the trader loses the bet, and their position is closed.

This downturn coincides with a decline in inflows into BlackRock's spot Bitcoin ETF, snapping a 71-day streak of consecutive inflows. According to CoinGlass data, Bitcoin spot ETF outflows surpassed $120.6 million after three consecutive days of inflows.

Meanwhile, Hong Kong's spot Bitcoin and Ethereum ETFs received official approval on Wednesday, with trading scheduled to commence on April 30th. Experts anticipate this move could inject up to $25 billion into the crypto market, contingent upon the ETFs being accessible to mainland Chinese investors.

Over the weekend, Bitcoin experienced its halving event, a phenomenon that halves the rewards earned by Bitcoin miners. Although this event has historically been bullish for the cryptocurrency's long-term value, it has also been associated with short-term losses. Since reaching a high of $65,230 on the day of the halving, Bitcoin has declined by 2%, dipping below $64,000.

Accompanying the halving was the introduction of a new Bitcoin token standard known as Runes. These tokens, essentially meme coins for Bitcoin, flooded the network, accounting for over 81% of transactions on Tuesday.