Recent data reveals a significant number of liquidations in the cryptocurrency derivatives market following Bitcoin’s drop below $58,000.

Bitcoin’s Value Plummets Over 4% in 24 Hours

After a bearish June, investors had hoped for a positive start to July. However, Bitcoin has not only erased its earlier gains this month but also experienced a sharp decline of over 4% in the last 24 hours, falling below $58,000.

Despite briefly dipping below $57,000, Bitcoin has rebounded to $57,700. The market turmoil has also impacted other cryptocurrencies, with many altcoins experiencing even greater losses alongside Bitcoin.

The derivative market has witnessed a chaotic day, with more than $294 million in liquidations, as reported by CoinGlass, in the past 24 hours. Long contracts account for $257 million, or over 87% of the total liquidations.

Large Liquidation Event in Cryptocurrency Derivatives

The sharp downward movement in the market has led to a surge in liquidations, with speculators aggressively trying to capitalize on the market volatility.

Notably, Bitcoin and Ethereum have been the top contributors to the liquidations, with Solana following behind significantly. The focus seems to remain on the two largest cryptocurrencies by market capitalization as speculation continues.