Bitcoin (BTC) Price Falls to Its Lowest Point Since February, Triggering a Cascade of Liquidations Worth Hundreds of Millions of Dollars

The price of the world's largest crypto by market capitalization has fallen to its lowest point since February, triggering a cascade of liquidations worth hundreds of millions of dollars.

The price of Bitcoin, the world's largest cryptocurrency, fell to its lowest level since February on Thursday, sparking a wave of liquidations in the crypto market.

As a key barometer of traders' expectations for future price movements, liquidations in long positions (bets that prices will rise) surged to over $500 million in the past 24 hours, according to CoinGlass data. This marks the highest single-day total since mid-April. An additional $80 million was wiped out in short positions (bets that prices will fall).

The sell-off comes as the price of Bitcoin dropped to as low as $55,000 late Thursday. The asset has since recovered some losses to trade at around $55,550, according to CoinGecko.

Bitcoin has faced resistance in breaking above the $60,000 level amid a lack of investor confidence and concerns over a $2.7 billion transfer from the Mt. Gox bankruptcy estate's cold storage to an unidentified wallet.

Ethereum, the world's second-largest cryptocurrency, also fell by more than 4% to below $3,000, marking the first such decline since May 17.

Broader uncertainty over the U.S. Federal Reserve's ability to bring inflation under control this year is impacting risk assets, including cryptocurrencies.

As a result, crypto prices could face continued pressure, with some experts predicting a further slide for Bitcoin to $52,000, Decrypt previously reported.

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