The Cryptocurrency Market Experiences a Massive Decline, with $2.6 Billion in Longs Being Liquidated
Crypto Pirates
English - September 07, 2021 22:45 - 4 minutes - 7.68 MBTechnology Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Bullish run expectations have taken a significant hit as the cryptocurrency market enters a lengthy break. The massive correction is said to have resulted in the liquidation of approximately $2.6 billion worth of long positions in the futures market. Traders who have been impacted by the incident are currently licking their wounds.
Bitcoin fell to $43,000 on Tuesday, only one day after reaching $52,000. According to statistics compiled by cryptocurrency data aggregator Bybit, liquidations occurred across multiple exchanges, with Bybit's derivatives market suffering the brunt of the action.
Bybit Leads on Liquidation List at Derivatives Exchange
According to the data, Bybit accounts for 35.27 percent of all liquidated positions, Huobi accounts for 30.01 percent, and largest cryptocurrency exchange Binance accounts for 17%. On Huobi market, the greatest single liquidation order totalled $43.5 million. All of these losses occurred inside an hour, according to reports.
In the previous 24 hours, about 330,000 traders have had their long positions closed. The price of the flagship cryptocurrency fell by roughly $10,000. As it turns out, El Salvador's Bitcoin day failed to produce enough momentum for the top crypto asset to break through the $52,000 barrier, where it remained until the surprise collapse.
El Salvador's Bitcoin law took effect in the early hours of September 7, prompting predictions of an increase. The crypto market, on the other hand, has significantly underperformed these predictions.
El Salvador, surprisingly, purchased 400 Bitcoin on the same day and increased its holdings by another 150 Bitcoins, bringing the total amount of Bitcoin held by the national government to 550 Bitcoins.
Bitcoin's Dominance Levels Off at 40%
According to CoinGecko, the leading cryptocurrency's market domination is currently 40.34 percent, while altcoins have suffered more losses than the former. Market capitalisation is not immune to the wave of losses, having lost $384 billion of its total value in the aftermath of the dip.
Despite the sharp decline, market watchers remain optimistic. Perhaps the upswing had grown a little too strong and the market required a rest before witnessing another upsurge that is anticipated to push the flagship cryptocurrency and several other altcoins, including Ethereum, to new highs.
As of press time, Bitcoin has reverted to $47k, or 8% below its earlier price. As it pulled cryptocurrencies such as Cardano, Solana, Litecoin, Stellar (XLM), and Bitcoin Cash (BCH) to $52k, it has now driven them back to the bottom. However, Solana is proving to be a fighter, going higher on its own merits following Tuesday's ATH of $193.