Bitcoin Plummets Below $39,000 as Aggregate Liquidations Surge to $320 Million Within 24 Hours

Bitcoin (BTC) faced heightened volatility on Tuesday, slipping below the crucial $39,000 threshold and registering a 4.33% decline over the past 24 hours. As of the latest update, the primary cryptocurrency was exchanging hands at $38,955. This market movement prompted a significant liquidation event, affecting 124,153 traders and resulting in total liquidations amounting to a substantial $326.47 million. Notably, the largest single liquidation order occurred on the Bybit platform, with a considerable value of $5.00 million.

Over the weekly charts, Bitcoin’s price has witnessed a decline of slightly over 9%, and the monthly perspective indicates a 10.72% decrease. This retreat follows a sudden surge that propelled Bitcoin to achieve a two-year high, surpassing $49,000. The surge coincided with the commencement of trading for 11 Bitcoin exchange-traded funds (ETFs) on January 11, following approval from the U.S. Securities and Exchange Commission (SEC).

Bitcoin has been grappling with downward pressure since Monday, aligning with earlier predictions that raised concerns about the potential impact of the massive sell-off in the Grayscale Bitcoin Trust (GBTC) on the overall cryptocurrency market.

With Bitcoin currently situated below the $39,000 mark, prospects for an immediate recovery appear less likely. However, some experts anticipate a potential shift in this trend, especially considering the upcoming Bitcoin halving cycle scheduled for April.

In tandem with Bitcoin’s descent, Ethereum also experienced a downtrend, posting a 6% drop and settling at $2,230. The selling pressure on Ethereum has been exacerbated by substantial outflows from the Ethereum Foundation, totaling $13.6 million.

Altcoins and stablecoins mirrored the broader market sentiment, with notable declines seen in Solana (SOL) and Avalanche (AVAX), down 8% and almost 10%, respectively. DAI and TRON registered more modest drops, falling less than 1% in the past 24 hours. The prevailing market conditions underscore the ongoing volatility in the cryptocurrency space, further highlighting the complex interplay of factors influencing digital asset valuations.