Bitcoin drops $1,500 in 9 minutes causing $1 billion in longs liquidated

0

The crypto market is not one for the faint-hearted. And in true fashion, Bitcoin and other cryptocurrencies suddenly plunged over 10-15% earlier today before quickly recovering.

But the recovery didn’t necessarily bear well for some traders: Close to $1 billion worth of Bitcoin and Ethereum longs were liquidated in the move.

A $1,500 drop

On Sunday morning at 4:30 UTC, Bitcoin saw a move down from $11,429 to $10,550 at 4:33 UTC. Prices were quick to partially recover, as the next 30 mins saw buyers push prices to $11, 236.

Bitcoin dropped $1,500 in minutes. Image; TradingView

At press time, Bitcoin trades at $11,280, with short-term charts pointing to further downside. However, the four-hour and daily charts continue to indicate strength, with the pioneer digital asset remaining above its 34-day and 50-day exponential moving averages (EMAs).

Long term action continues to show an uptrend, for now. Image: TradingView.

The move took out over $800 million to $1 billion in longs. The Block director of research Larry Cermak tweeted:

He noted that the largest single liquidation order (worth about $10M) happened on BitMEX’s Bitcoin perpetual swap, adding:

“Most of the liquidations, about $647 million, came from Bitcoin’s futures, followed by Ethereum with $165 million of liquidations.”

The volatile move was the most in recent weeks. Bitcoin largely traded between $9,200 – $9,500 for most of June and July, but developments around Ethereum and the DeFi market has resulted in positive inflow towards the broader cryptocurrency market.

A similar move was last seen in mid-March on “Black Thursday,” when Bitcoin fell over 45% in two trading sessions for no fundamental reason. Prices slowly recovered at the time and even surged in the run-up to Bitcoin’s halving event on May 12, but ranged in a narrow price band since.

Today’s drop comes after Bitcoin rose nearly 30% in the past week from $9,300 to over $12,000. Other cryptocurrencies followed suit, with Litecoin, Zcash, Ethereum rising between 20-35%.

Meanwhile, data shows American citizens have poured in over $67 billion into Bitcoin and other large-cap cryptocurrencies since the start of 2020; indicating massive retail interest and new money entering the market.

Like what you see? Subscribe for daily updates.

Source link

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

ethereum
Ethereum (ETH) $ 411.43 0.76%
chainlink
Chainlink (LINK) $ 12.30 2.76%
ampleforth
Ampleforth (AMPL) $ 1.12 1.26%
maker
Maker (MKR) $ 592.86 1.29%
compound-governance-token
Compound (COMP) $ 104.06 0.10%
havven
Synthetix Network Token (SNX) $ 3.80 2.32%
ethlend
Aave [OLD] (LEND) $ 0.412076 1.17%
kyber-network
Kyber Network (KNC) $ 0.921099 2.53%
0x
0x (ZRX) $ 0.375941 2.44%
augur
Augur (REP) $ 13.48 1.09%
republic-protocol
REN (REN) $ 0.334640 1.71%
loopring
Loopring (LRC) $ 0.166761 1.67%
bancor
Bancor Network Token (BNT) $ 0.926352 4.32%
yearn-finance
yearn.finance (YFI) $ 15,374.84 10.88%
band-protocol
Band Protocol (BAND) $ 5.88 1.92%
kava
Kava (KAVA) $ 1.89 4.93%
reserve-rights-token
Reserve Rights Token (RSR) $ 0.014104 4.65%