Crypto market collapse: what is the cause and what will happen next

Consolidating around $60,000 failed. The world's first cryptocurrency by capitalization fell to four-month lows - below $54,500. BTC has not cost so much since the end of February.

What caused such a sad development? In fact, there are several problems. The first thing to note is the increased number of liquidations (forced closing of positions). Especially it concerns longs. Over the last four days (July 2-5), shorts were closed for $57.31 million, while longs were liquidated for $270.698 million, which is 4.72 times more. It should be taken into account that by the moment of writing the material July 5 is still going on.

The story of the outflow of money from spot bitcoin ETFs also continues. That's not to say they are any exorbitant. Nevertheless, the last inflow of funds was observed just on July 1 - the last day before the collapse of quotes. But on July 2 and 3, the outflow amounted to $13.62 million and $20.45 million, respectively.

The story with the outflow of money from spot ETFs on bitcoin also continues. We cannot say that they are exorbitant. Nevertheless, the last inflow of funds was observed just on July 1 - the last day before the collapse of quotes. But on July 2 and 3, the outflow amounted to $13.62 million and $20.45 million, respectively.

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