$4.4B Liquidated From Crypto Exchanges As Bitcoin's Market Cap Falls Under $1 Trillion

What Happened: Bitcoin, Ethereum, and other major cryptocurrencies fell by over 17% as the crypto market was dominated by red candles.

Bitcoin was trading at $46,500 at press time, and its market cap fell below $1 trillion for the first time since crossing it a week ago.

The second-largest cryptocurrency by market cap dipped even further, falling over 23% back to $1,452 at the time of writing.

Why It Matters: The selloff across the crypto market had a considerable impact on traders' positions.

Over 474,968 traders were liquidated in the past 24-hours, with a total of $4.4 billion liquidated across crypto exchanges.

According to crypto exchange data aggregator Bybt, this was the largest liquidation event in Bitcoin Futures history, with a record amount of long positions liquidated.

What Else: According to some reports, several crypto exchanges, including Binance and Gemini, experienced a fall in the amount of their Bitcoin reserves.

See also: Best Cryptocurrency

As the exchange’s Bitcoin reserves continue on a downward trend, the cryptocurrency’s liquidity shrinks. As a result, even a small trading volume can have a large impact on price.

On-chain data from Santiment revealed that a single wallet address was a contributing factor to Bitcoin’s price retracement.

The user of the address in question withdrew 2700 BTC tokens, which amounted to nearly $160 million at the time, off the exchange to his individual wallet.

Image: Pepi Stojanovski via Unsplash

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyFintechNewsMovers & ShakersMarketsGeneralBitcoincryptocurrenciesEthereumExchanges
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!