Bitcoin Drops Below $58K on Coinbase for the First Time in Two Months

On July 4, Bitcoin briefly fell to $57,874 on Coinbase, marking its first dip below $58,000 in over two months. This decline occurred amidst a broader crypto market sell-off, resulting in the liquidation of $54.9 million in Bitcoin long positions within the last 24 hours.

At the time of writing, Bitcoin has recovered slightly, trading at $58,964, though it remains down 3.4% for the week, according to TradingView data. The drop in Bitcoin’s price has significantly impacted traders who had leveraged long positions in anticipation of a price increase.

Data from CoinGlass shows that over $54.9 million in Bitcoin long positions were liquidated in the past 24 hours. Similarly, traders who sought long exposure to Ether (ETH) ahead of the anticipated mid-July launch of several spot Ether ETFs also experienced substantial liquidations. In total, $57.9 million in ETH long positions were wiped out over the same period.

A significant portion of the blame for Bitcoin’s decline has been attributed to the forthcoming repayments from the defunct Japanese crypto exchange Mt. Gox, which is set to begin distributing approximately $8.5 billion worth of BTC to its creditors in early July. Despite this, some analysts believe the impact of these repayments on Bitcoin may not be as severe as anticipated.

During Bitcoin’s brief dip below $58,000, other major cryptocurrencies and altcoins also saw sharp declines. Ether is currently down 4.5%, having fallen to $3,145 during a sharp sell-off at 2:00 am UTC on July 4. Binance Coin (BNB) is down 6%, dropping from $573 to $539. Solana (SOL) has also lost 10.3% in the last 24 hours, falling from a weekly high of $154 to $136.

Meanwhile, mentions of “buy the dip” have surged across social media platforms over the last two days. The phrase’s usage has doubled on Reddit, X, and 4Chan during this period, indicating a significant interest in purchasing Bitcoin during its price decline.