$102 Million Positions Liquated In Just Half An Hour As Fresh Crypto Market Fall Takes Total Market Cap Below $2T
Crypto fall is not stopping as the market is falling further.
Bitcoin has fallen below $42K while Ethereum is trading below $3300. If the King crypto cannot hold the physiological support of $40K, then we might see more intense bleeding.
The fresh rally of downfall has caused some severe trading positions liquidations. Journalist Colin Wu reports that the contract liquidation reached $102 million in just half an hour, of which $40 million in BTC and $42 million in ETH.
According to coinglass, the contract liquidation in the past half hour reached $102 million, of which $40 million in BTC and $42 million in ETH. At present, BTC has fallen below $42,000, and ETH has fallen below 3,250.
— Wu Blockchain (@WuBlockchain) January 7, 2022
A liquidation occurs when an exchange forcibly closes a leveraged trader’s position as a safety mechanism due to the trader’s partial or total loss of the initial margin. This occurs primarily in futures trading, which only tracks asset prices instead of spot trading, where traders own real assets.
The fall in bitcoin prices has led to a sharp contraction in altcoin markets. More than 200,000 positions have been liquidated in the last 24 hours, with most losses coming from US trading hours. More than 87% of the $800 million in liquidation was in long positions, futures contracts in which traders are betting on price increases. Cryptocurrency exchange OKEx liquidated $241 million, the highest among major exchanges, while traders on Binance suffered losses of $ 236 million.
In the first six days of 2022, the market has already lost $700 billion. While total market cap tanked below $2T, currently sitting on $1.98T. If BTC cannot recover from the current fall, it will confirm the bearish trend to take the king of crypto retrace back to $30K.
Crypto experts give two main reasons for this market fall; first, the US Federal Reserve indicated that an interest rate hike could occur in March rather than the usual time frame. Second, Bitcoin faces mining problems from Iran and Kazakhstan.
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