$2.5 Bln of Leveraged Crypto Positions Were Liquidated

On Saturday, Bitcoin-focused technology and financial services firm NYDIG informed that around $2.5 billion of crypto leveraged positions were liquidated. $1.1 billion of the amount were Bitcoin positions.

Bitcoin dropped below $47.000 on December 7 and was traded at around $46.600 according to CoinGecko. However, as MarketWatch announced on some exchanges the price was even lower. The coin lost over 17% in a day as on Friday morning its price was $57.000. The Saturday liquidation was the largest since September 7.

Currently, Bitcoin trades at around $48.000 with a market cap of $907 billion. The global crypto market cap stands at over $2.2 bln.

Among the reasons for the fall can be major selling of technology stocks caused by market uncertainty as a result of the discovery of a new Covid variant.

The market uncertainty increased when US Fed Chair Jerome Powell announced that the Central Bank will discuss accelerating its wind-down of bond purchases. Statistics show that in many cases, crypto and stock markets can behave similarly. At the same time, there are many other factors to have impacts on prices.