Over 180,000 traders lost approximately $520 million as Bitcoin traded below $25,000, a price point, not seen since December 2020. Many have compared the decline in the market to what was seen in the 2008 market crash. While others have likened this selloff to the Game of Thrones’ famous episode, “The Red Wedding”.
Bitcoin has fallen below a critical support zone, the $25,000 support zone and with it, liquidation, margin calls and loss of funds. The entire cryptocurrency market capitalization has fallen approximately 8% as it currently stands below the $1 trillion. Iindicating that the market has lost its trillion-dollar status.
As with bitcoin, so it is with every other altcoin posting declines of 20%. A major focus has been the CEL token, the native token of Celsius, who has now lost over 50% of its value in just 24 hours.
What you should know
Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a loss of the trader’s initial margin. It happens when a trader is unable to meet the margin requirements for a leveraged position.
Longs accounted for $351.62 million or 67.88% of the total liquidations seen in the market. The shorts accounted for the rest.
Asides from the Russian – Ukraine war, the selloffs then got intensified when the U.S. Fed hiked its interest rate to 1%, the largest increase since 2000.
When Bitcoin sneezes, the altcoins catch a cold. We saw a massive sell-off in the altcoin market, with many tokens losing 20%.
Okex exchange accounted for the most liquidation, representing $186.74 million or 36.05% of the total liquidations. Binance came in second, accounting for $124.90 million which represents 24.11%.
Bitcoin liquidations accounted for the most as expected, representing $225.72 million of the total liquidations in the last 24 hours. Ether came in second, accounting for $167.26 million and in third place, SOL, accounted for $13.21 million.
In summary, Bitcoin (BTC) plummeted under $25,000 amid weakness in the macroeconomic environment and systemic risk from within the crypto market, data shows. The asset has slid for nearly twelve straight weeks, falling from nearly $49,000 in March 2022 to under $25,000. It showed some signs of bottoming out in mid-May but worrying U.S. inflation data released last week did little to cushion falling sentiment.
-Nairametrics.