The nocturnal volatility sent the biggest cryptocurrency to six-month lows. It was another black day for leveraged traders, with liquidations already exceeding $ 700 billion.
Liquidations again affected lever traders
Bitcoin and the entire crypt market failed on Friday. In a matter of hours, the price of BTC fell more than $ 4,000. At the time of writing, the main cryptocurrency is trading at $ 39,000. with the current sink bottom lying around 38 250 USD.
Traders who use trading and especially leverage trading have in many cases again hit the unprepared. They staggered from several-day highs of around 43,000 to almost 6-month lows, resulting in massive liquidations.
Across trading platforms, these liquidations were predictably significant. For bitcoin and altcoins, the 24-hour leverage traders’ losses totaled $ 725 million. Of that, BTC liquidations accounted for $ 292 million. As expected, most of it was long.
According to Cointelegraph, Friday’s option expiration, which included open interest of nearly $ 600 million, was considered the main culprit of the downturn. However, the proposed blanket ban on trade and mining of cryptocurrencies in Russia may also have played a significant role in today’s developments.
The Altcoins were hit
Of the top 10 cryptocurrencies by capitalization, most fell by about 9 or 10%. In the entire first hundred, only stablecoins were avoided, with a few exceptions. When bitcoin falls, everything falls – that is the law of cryptotrhu.
Ethereum fell to about $ 2,800, which is the lowest price in almost half a year. Cardano is 60% off from its highs. Polkadot is also in excess of 50% and the BNB is slightly better off, but it has also written off about 9% today. We could continue like this for a long time to come, because the wave of sales that began after reaching ATH on BTC in November continues.
Conclusion
On Friday, crypto investors had another chance to buy bitcoin and other cryptocurrencies cheaper. The fall was just below 10%, which is not unprecedented in terms of cryptotruky ratios. The liquidation caused by this sharp increase in volatility exceeded three-quarters of a billion dollars. This is also no exception, so be careful.
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