$500 Million in Liquidations as Bitcoin Struggles Around $42K
7 Jan, 2022•1 min read•Bitcoin
The enhanced volatility in the digital asset space hit again in the past few days, and the total amount of daily liquidations jumped to half a billion.
It’s safe to say that the cryptocurrency market has seen better days. Bitcoin, for example, traded around $47,000 for several consecutive days until 36 hours ago. At that point, the bears, perhaps fueled by a Fed announcement in terms of its balance sheet, pushed the asset south vigorously. It initially dumped by $4,000 to around $43,000, as reported yesterday, but the landscape worsened today following another nosedive to $41,000. The latter became BTC’s lowest price line in more than three months. The altcoins are in no better situation as Ethereum sits at $3,200 – just two days ago, the second-largest crypto traded above $3,800. Overall, the entire market cap has declined by nearly $300 billion in two days and is well below $2 trillion now. This enhanced volatility caused pain for over-leveraged traders. Data from Coinglass (formerly Bybt) shows that the total liquidations on a daily scale are just shy of $500 million. The number of traders liquidated is around 130,000, while the largest single liquidation order was on Bybit – worth over $5 million.