Bitcoin Plummets: $6,000 Drop in 24 Hours Triggers $4.9 Billion Liquidation Crisis

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Market Turmoil: Bitcoin's Sharp Decline

The cryptocurrency market experienced severe volatility over the past 24 hours, with Bitcoin leading the downward spiral. According to Investing.com data, Bitcoin's price dropped from above $60,000 to briefly fall below $54,000—a $6,000 decline within a single day.

At press time on July 5th, Bitcoin was trading at $54,206.20, marking an 8% decrease. The sell-off affected the entire crypto market:

Liquidation Carnage: By the Numbers

CoinGlass reports staggering liquidation figures:

👉 Why are crypto liquidations happening at record rates?

Behind the Crash: Key Factors

1. Failed ETF Expectations

Per China Securities Journal, the crash followed the disappointment of anticipated Ethereum spot ETF trading on July 4th failing to materialize.

2. Miner Sell-Off Pressure

IntoTheBlock data reveals:

3. Fed Policy Impact

The Federal Reserve's latest meeting minutes showed most officials still require more evidence of declining inflation before considering rate cuts.

4. Exchange Dynamics

Binance's removal of six trading pairs (effective July 5th) added market uncertainty, though the exchange didn't specify reasons beyond routine reviews.

Mining Crisis: Operational Challenges

f2pool data indicates multiple mining rigs (including Antminer S19 and Whatsminer models) have reached shutdown price points—where operational costs exceed mining rewards at current Bitcoin prices below $58,000.

New Crypto Entrants

July sees five new cryptocurrencies entering the market:

  1. 5thScape (5SCAPE)
  2. DarkLume (DLUME)
  3. SMOG
  4. PlayDoge
  5. Pepe (PEPE)

FAQ: Understanding the Crash

Q: How long might this downturn last?
A: Market recovery depends on ETF approvals, miner stability, and macroeconomic conditions—likely weeks to months.

Q: Should investors buy the dip?
A: While prices are low, crypto remains highly volatile. Diversify and only invest what you can afford to lose.

Q: What's the shutdown price for miners?
A: Currently ~$58,000 for efficient rigs at $0.06/kWh electricity rates.

👉 How to protect your portfolio during crypto volatility

Sources: Securities Times, China Securities Journal


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