$400M in Liquidations Daily as Bitcoin Dipped Below $20K
Bitcoin has only intensified its recent price drop, dropping just below $20,000 for the first time in about six weeks.
Alternative tokens were also affected, resulting in the liquidation of nearly $400 million by overleveraged traders.
- encrypted potato The report reports that Bitcoin price action has been relatively stable over the past week or so. After dropping $4,000 the previous week, BTC spent most of its time around $21,000. It challenged $22,000 a few days ago to no avail.
- It calmed down at $21,500 yesterday, but that was when Fed Chairman Jerome Powell addressed the nation again, essentially repeating the central bank’s previous stance on how to fight inflation.
- However, the crypto market responded with an immediate price drop. On the one hand, Bitcoin dropped $1,000 within a few hours before continuing its plunge. As such, it fell below $20,000 for the first time since mid-July.
- The shape of the alternative coin is not much better. Some, such as ETH, SHIB and AVAX, fell by double digits. Ethereum has fallen below $1,500 after rising above $1,700 two days ago.
- The overall cryptocurrency market cap has dipped below the coveted $1 trillion mark as most alts have seen sharper retracements.
- This heightened volatility hurts overleveraged traders. data Data from CoinGlass shows that the total value of liquidations in the past 24 hours was as high as nearly $400 million.
- To date, over 125,000 traders have been compromised, with the single largest liquidation position taking place in the OKX vs BTC/USDT pair – worth $3.5 million.
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