Bitcoin Price Drops to $105,000
On the night of May 29-30, the price of Bitcoin fell below $105,000, while the day before it was trading above $108,000. Exactly a week before that, on May 23, the cryptocurrency reached a historical maximum of about $112,000.
This sharp decline in value triggered mass liquidations of margin positions in the market. According to Coinglass, almost $700 million of traders' funds were liquidated on the largest crypto exchanges in just one day, of which more than $200 million were long positions on Bitcoin. The losses affected over 200 thousand users who traded using leverage. The fall affected not only the first cryptocurrency - all top 100 altcoins have also been trading in the red over the past day, with some assets losing more than 10%.
Position liquidation occurs when the price of an asset moves against the trend chosen by the trader and the loss becomes so large that the collateral provided by the trader can no longer cover it. In this case, the exchange automatically closes the trade forcibly to prevent further losses on the part of the user.
Let us recall that at a conference held in Las Vegas, Donald Trump Jr. and his brother Eric Trump expressed confidence that Bitcoin could renew its historical maximum in the near future.
