On April 12, the crypto market was hit by an unanticipated drop in price for Bitcoin and other prominent altcoins, which led to massive liquidations. It is unclear what caused this price drop, although there are a number of possible reasons. One of these could be a price correction that occurred recently in US stock exchanges.
Crypto Flash Crash: Nearly $500 Million liquidated in just one hour
The following is a list of data from CoinMarketCapBitcoin fell by 4.49% on the last trading day and reached a low of $66,052. BTC’s fall was expected to reverberate through the entire market. Popular altcoins Ethereum (8.12%) and Solana (12.16%) both suffered daily losses.
According to the data, this loss translated into 277.843 traders who lost their leveraged positions. The total cryptoliquidations in the last 24-hours reached $877.21 Million. data from Coinglass. Long positions made up $782.98 millions, while short sellers lost only $94.24million.
A general decline in prices led to the closing of $467,000,000 worth of leveraged positions within one hour. Binance recorded the highest number of liquidations, $369.85 millions. The largest single liquidation order was $7.19million on the OKX exchange’s ETH-USD trading market.
Source: Coinglass
Interestingly, Bitcoin’s price decline correlated with a dip in the US stock market as the S&P 500 index declined by 1.6% to trade as low as $5,108. The crash in the market was preceded recent CPI data. This showed the rate of inflation rose by 3.5% in March.
The reports suggest that there will be no rate cut by the US Federal Reserve anytime soon. Its goal is to reduce inflation to its target annual of 2%. This is not a good prediction as it allows investors to be more comfortable with risky assets, such as BTC.
Bitcoin’s network grows as the halving approaches
In a positive development, Bitcoin’s network has seen a significant increase in the number of non-empty wallets ahead of April 19th. Santiment, a blockchain analytics platform reported An increase of 370,000 BTC Wallets that hold active coins in the past six days. Interestingly, analysts are encouraging investors to keep this accumulation trend going throughout 2018. Bitcoin halving event.
Bitcoin traded at $66,882 with a 44.80% rise in daily volume. The current value of the cryptocurrency is $43,80 Billion. Bitcoin’s recent price performance has been mediocre, as it fell by 1.33% in the past seven days and by 6.20% over the last 30.
Source:| Source: BTCUSDT chart on Tradingview.com
Chart from Tradingview, based on The Independent’s featured image
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