Another USD 1B Liquidated In One Hour As Crypto Selloff Intensifies 101
Source: iStock/sunxsand

After more than USD 4bn in cryptoasset trading position was liquidated yesterday, another USD 1bn was liquidated today in just one hour as a selloff in the crypto market intensified, increasing bitcoin (BTC)’s dominance.

Almost 91% of the liquidated positions are long positions, while BTC accounts for around 40% of them. In the past 24 hours, USD 5.77bn has been liquidated, per bybt.com data.

At the time of writing (09:33 UTC), BTC trades at USD 48,110, rebounding from USD 45,917, reached earlier today. The price is still down by 13% in a day, trimming its all weekly gains. It also dropped by 21% from its all-time high of USD 58,641 (per Coingecko.com), reached this past Sunday.

Read Also:   Tezos’ Edo Upgrade Will Implement Zcash’s Sapling Protocol for Shielded Transactions

Other coins from the top 10 list are down by 11%-30%, while dozens of smaller altcoins from the top 100 club are down more than 20%.

As many cryptoassets are dropping against BTC, its dominance, or the percentage of the total crypto market capitalization, is on the rise again, reaching almost 64%, or around 2 percentage points more than a day ago.

Liquidations in one hour:

Another USD 1B Liquidated In One Hour As Crypto Selloff Intensifies 102
Source: bybt.com

As reported, long liquidations have become more numerous over the past month or so. With bitcoin (and other coins) breaking all-time highs nearly every passing week, some traders may feel unable to gain significant exposure without margin trading.

Read Also:   Celebrities from All Industries Were Pumping DOGE to the Moon Over the Weekend

However, a growing number of traders can’t afford to maintain their leveraged positions in the event of dips. Hence, the growing frequency of big liquidations.

Leveraged trading refers to borrowing funds so that you can take a larger position than you would be able to with your existing funds so that you can potentially generate a higher profit. However, while margin trading enables traders to amplify their returns, it can also lead to increased losses and liquidations, which is why experienced traders tend to advise newcomers to stay away from leveraged trading.

___

Reactions:

__
(Updated at 09:48 UTC: updates throughout the entire text.)




Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


Another USD 1B Liquidated In One Hour As Crypto Selloff Intensifies

by Benjamin Hartman
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format