The month which started with an optimistic view for Bitcoin price hitting high record was short-lived as the price value has been hit by a biggest downfall falling at $35,774.63 USD with a -19.88 per cent fall in the last 24 hours. And now, in a sudden crash the cryptocurrency liquidations has hit a record of $10 billion that was initiated by the reports of US crackdown, as well as power blackouts in Xinjiang province in China which has drastically turned into a major downfall of 50 per cent in the Bitcoin price rate. Bitcoin saw record liquidations of $33.3 Billion and many traders has been impacted due to this big crash.
If we look at the market capitalisation of cryptocurrencies in total, including Bitcoin, it has been fallen by a shocking $310 billion which started at the peak of 2.2 USD trillion. Overall, this setback denotes a 14 per cent crash in the cryptocurrencies market value, affecting Bitcoin as well.
All the major cryptocurrencies prices, including Bitcoin have dropped drastically in the last 24 hours which has dropped its market cap at $669.46B along with the volume (24 Hour) at $89.54B, at the time of writing.
The month is not even ended yet and the price of Bitcoin has dropped down to $35,774.63 USD, at the time of writing which has observed the 14 per cent downfall in the past 24 hours. The big drop in the world’s popular cryptocurrency, Bitcoin coins, may seem intense but if we consider the crypto assets’ high instability, it should not come as a big surprise for many investors.
Cryptocurrency liquidations are basically caused at the time when the trader or the investor is not able to accomplish the margin requirements that is obligatory for their positions, most probably the long positions, which in simple term means that the traders or investors were bullish on Bitcoin prices.
A crash in Bitcoin prices has now gone in total opposite direction, which has resulted in increasing the margin required for maintaining long positions. Whenever the situation arises that the traders run out of cash for maintaining these positions, they are liquidated. So while the price of Bitcoin will move back up, the long positions are going to be strike to be at losses.
Before the recent $33.3 Billion Bitcoin Liquidation, the biggest liquidations was witnessed in this same year in between February 20, 2021 and Feb 23, 2021 with the sum of $7.16 billion as Bitcoin plunged from $56,000 and falls down to below than $49,000. But now, the price of Bitcoin on May 19 has hit $35,774.63 USD mark with 24 hour low at $30,201.96 USD and 24 hour high at $43,870.14.
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