Bitcoin Market Suffers Major Dip, $1.6 billion Liquidated Within 12hours
Bitcoin (BTC) suffered a significant dip in its price, dropping by more than 11% overnight. This dip took the market by storm, with over $1.6 billion liquidated in exchanges within 12 hours.
Bitcoin (BTC) Price Drops Sharply after ATH
Bitcoin has been enjoying steady gains in the past two weeks after a reasonably stable end to January. Buoyed by solid fundamentals, the leading coin’s price surged past the $50k on February 16 to herald a new bull run.
Since then, BTC’s price slowly climbed, with the coin hitting an all-time high of $58,330, according to data from CoinMarketCap. However, the past 24 hours have witnessed a significant decline in the price of bitcoins.
Bitcoin is currently down more than 14% and is down by more than $10,000 during this period. As expected, the drop in BTC has affected the crypto-market, with most coins currently in the red zone.
Leading altcoin Ethereum (ETH) is down by 23%, while Binance Coin (BNB) and Cardano are down 21.18% and 10.12%, respectively. The total market cap is also down 17% in the past 24 hours and currently valued at $1.37 trillion.
$1.6 billion liquidated from Exchanges
As expected, the dump in bitcoin’s price resulted in massive liquidation of trader’s funds on several exchanges. Data from market tools Bybt shows that the past 24 hours recorded one of the highest days of liquidations in crypto history.
But recorded that over $1.6billion was liquidated on major crypto exchanges in the past 12 hours. Binance led the list with over $600 million in long positions closing out due to the price dip. Huobi recorded $400 million in liquidation while OKEx came in third with $248 million liquidated during this period.
These massive losses are a further indication of how volatile the crypto market can be during periods of price swings. Traders can quickly lose all their capital within minutes if the market goes against their market positions. At the time of writing, the market is still bearish, with Bitcoin trading around $47,000. There are expectations that the market could move into an extended bearish run that could see BTC drop to $40,000.