Bitcoin crash causes traders to lose R$550 million
CryptoFácil – The cryptocurrency market entered a sharp liquidation earlier this Thursday (19). According to CoinGecko, (BTC) and Ether ( ) are below the newly broken support levels, which has pushed the entire market lower.
As a result, traders who bet on new heights suffered big losses. According to Coinglass data, the losses amounted to 110 million USD, which is about R$550 million in current values.
Bitcoin and Ether crash and generate losses
On Wednesday (18th), BTC was between $21,600 and struggling to reach $22,000. However, the price of the cryptocurrency fell rapidly on Thursday morning. Specifically, BTC lost more than $1,000 and fell to $20,450.
On the other hand, ETH was priced at $1,600, but it dropped to $1,500. With these cuts, both cryptocurrencies posted losses of more than 2%.
Major cryptocurrencies such as e() followed suit. Such is the case with (DOGE), which fell 4.4% and posted the worst drop in the top ten.
Data from CoinGlass shows that $110 million in futures positions betting bullish BTC and ETH account for more than 76% of all futures trades. But they weren’t the only positions that fell: Dogecoin (DOGE) futures also saw $9 million worth of liquidations.
Futures (SOL) and Aptos (APT) lost $8 million each. Overall, the market has accumulated $224 million in general liquidations. Cryptocurrency exchange OKX suffered the largest losses with $109 million, followed by Binance with a liquidation of $90 million.
Bitzlato effect?
Coincidentally, the drop occurred shortly after the US Department of Justice announced the closure of the Bitzlato exchange, which is accused of handling $700 million in money laundering. The exchange allegedly helped aid hackers linked to the Russian government.
However, some analysts predicted an imminent decline regardless of news-based trading.
“The entire recent rally has been built on the backbone of continued selling in the market, with funding and prices kept low driven by forced liquidations and stalls,” market analysts at Bitfinex said in a note earlier this week.
“A pullback can be expected with a cautious bullish approach,” they said, noting the “limited traders in the market, which is evident from the depth of the market which remains unchanged from week to week.”
However, the market has begun to moderate some of the losses throughout the morning, with bitcoin returning to stability.
by CryptoFacil