This sharp decline triggered a wave of liquidations, causing losses for those who had bet on the asset's price to rise.

According to data from CoinGlass, the past 24 hours witnessed over $261 million in long positions being liquidated for all cryptocurrencies combined. When factoring in short positions as well, the total liquidations reached a staggering amount of over $324 million. In just the last four hours, nearly $70 million worth of positions were liquidated, with $24.4 million of it relating to Bitcoin.

Currently, Bitcoin's price stands at $60,309, as reported by CoinGecko. However, it was noted that the cryptocurrency dipped as low as $60,012 not long ago. The situation seems grim for Ethereum as well, as its value dropped to $2,985, marking a 6% decline over the past 24 hours. Meanwhile, Bitcoin experienced a daily dip of just under 4%.

Bitcoin reached a historic high of nearly $74,000 in March, surpassing its previous all-time high of $69,044 in 2021, according to CoinGecko data. The initial rise in price was largely attributed to the approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission in January. These ETFs allowed new investors to gain exposure to the cryptocurrency asset.

However, recent indications that the Federal Reserve will maintain higher interest rates for a longer period, coupled with geopolitical tensions in the Middle East, have led investors to shy away from risk assets such as cryptocurrencies. Furthermore, the initial hype surrounding the new spot Bitcoin ETFs appears to have faded, with investors now opting to cash out of these vehicles. This trend has contributed to the further decline in the price of Bitcoin, the largest digital coin in the market.

It is important to note that the views and opinions expressed in this article are for informational purposes only and should not be considered as financial or investment advice. Investors are advised to stay updated with the latest developments in the crypto market for informed decision-making.

Stay informed about the latest crypto news by subscribing to receive daily updates in your inbox.