The cryptocurrency market crashed overnight, and the losses spilled into Sunday as well.
Losing as much as 30% of their value in the past 24 hours, about $300 billion have been wiped out from the market.
Bitcoin price went as low as $51,300, and Ether price touched $2,000 on Coinbase.
This crash could have been propelled by Treasury rumors. The market was spooked by the speculation that the US Treasury is looking to charge several financial institutions for money laundry using crypto.
I don't find this credible. The tweet itself is fishy: Treasury doesn't charge money laundering (DOJ does) & a case against several FIs at once would be unusual. Also, criminal investigations are kept strictly confidential & rarely leak. I'm not convinced by unnamed "sources." https://t.co/71opA5cUby
— Jake Chervinsky (@jchervinsky) April 18, 2021
Another potential reason could be the drop in the Bitcoin hash rate, which has now fully recovered while prices are in the process of it. As we reported, there has been a coal mine accident in Northwest China, leading to blackouts in the area and mining pools losing over 20% of their hashing power.
As Charles Edwards of Capriole Investments noted, “One province in China represents a significant share of the Bitcoin network,” hence the result.
Price and hash rate has always been correlated.
This is BTC price vs today's hash rate collapse (from the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
— Willy Woo (@woonomic) April 18, 2021
Much like always, extreme leverage exacerbated the already bad situation. Setting a new record and beating the March 2020 crash, 1,063,216 traders were liquidated for an eye-watering $10.1 billion in the past 24 hours.
On March 12th, Black Thursday, the record was set just above $4 billion, while the market took another heavy beating on Feb. 21st was just under $6 billion. But now on the chart, they are just a blip.
Of course, more than half of this new record was thanks to Binance degen traders, accounting for nearly $5 billion of it.
In terms of cryptocurrency, Bitcoin longs suffered the most, followed by Ether, XRP, BNB, DOGE, and Litecoin , as per Bybt.
$ 2,144.62 -$239.77 -11.18%
Volume 49.39 b Change -$239.77 Open $2,144.62 Circulating 115.52 m Market Cap 247.75 b
12 min Coinbase Starts Offering Eth2 Staking, Over 3.8 Million ETH Already Deposited in ETH 2.0 26 min A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 1 h BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000
XRP / USD XRPUSD
$ 1.33 -$0.25 -18.89%
Volume 20.41 b Change -$0.25 Open $1.33 Circulating 45.4 b Market Cap 60.5 b
26 min A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 2 d Bitcoin Drops to the “Key Support,” Path to $75k is Cleared On the Upside 3 d Coinbase Is Now Live On Nasdaq , Valuation Soars Past $100 Billion with Shares Trading Above $400
Binance Coin / USD BNBUSD
$ 462.76 -$54.74 -11.83%
Volume 6.38 b Change -$54.74 Open $462.76 Circulating 153.43 m Market Cap 71 b
26 min A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 2 d One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 3 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week's Victory; XRP Jumps On the News
Dogecoin / USD DOGEUSD
$ 0.31 $0.07 23.26%
Volume 24.18 b Change $0.07 Open $0.31 Circulating 129.24 b Market Cap 40.66 b
26 min A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 2 d Meme Coin Rages On: Dogecoin Hits 5th On CoinMarketCap, DOGE Inducing FOMO at $.40 2 d Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)
Litecoin / USD LTCUSD
$ 264.62 -$50.44 -19.06%
Volume 13.7 b Change -$50.44 Open $264.62 Circulating 66.75 m Market Cap 17.66 b
26 min A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 1 d Miami-Dade County Task Force Is Looking at Ways for Residence to Pay Taxes Using Crypto 3 d Grayscale Bitcoin Trust (GBTC) Is Fast Approaching World's Largest Commodity ETF, GLD with $57B AUM
This wipeout normalized the funding, which went negative and still is after a long time, with the highest Bitcoin funding rate as of writing at 0.1347% on Bybit. During the whole ordeal, Bybit actually traded 4.20% below the spot.
Although it is yet to be seen, the market looks to be bottomed given that the leverage ratio is decreased, though still high. In fact, the market is not in fear but is still greedy, with the Kimchi premium hitting 26% today in the aftermath of this, as per Crypto Quant.
I guess I might BTFD. #Bitcoin
Chart https://t.co/HPY6diDS1q pic.twitter.com/WEUhvEd3sg
— Rafael Schultze-Kraft (@n3ocortex) April 18, 2021
However, according to trader Wolf, bulls need to reclaim $56,900, or bears will be in control that could further take us down to $45,300 because “this would be the first time since September that we lose important support,” of daily MA50. Another trader Bitcoin Jack actually sees a second dump likely, which could either be “truncated or much deeper.”
Overall, with futures in backwardation, low liquidity on the weekend, massive arbitrage between exchanges, and spot bids stacked as Avi Sanyal, Head of Trading at BlockTower, says, instead of panic selling, this is time to buy the dip.
55,605.3756 -$5,160.18 -9.28%
- Volume 94.87 b
- Change -$5,160.18
- Circulating 18.69 m
- Market Cap 1.04 t
The post A New Record: Over 1 Million Traders Liquidated for a Whopping .1 Billion first appeared on BitcoinExchangeGuide.
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