More Than 57,000 Traders Liquidated As Bitcoin Declines Below $22,000

 

Bitcoin’s price has fallen to $22,000 again. It has had its consequences, as expected. Most notable have been the liquidations which have increased in value in just 24 hours. More than 57,000 traders saw their positions liquidated in the latest crash.

Bitcoin Dip Triggers $151 Million Liquidations

In the cryptocurrency market, over 57,000 traders were liquidated within the past 24 hours. In total, $151 Million worth of assets have been liquidated within the cryptocurrency market in just one day. Most notable of all are the Ethereum liquidations. 

Ethereum had been the leader in the market recovery, when it rallied above $1,600. It had also led short liquidations. Now, Ethereum is leading long liquidations. Ethereum liquidations have surpassed $70 million within the past 24 hours, and $20 million over the course of the past 12 hours. 

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Another example is bitcoin. It has seen only half the number of liquidations as Ethereum. There have been over $30 million in liquidations of bitcoin in the last day. This accounts for 1.38K BTC. It is the second largest liquidation of a digital asset over the past day. At 63.96%, the majority of liquidations were from long-term traders. 

Bitcoin price chart from TradingView.com

 Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com

FOMC Takes Control of Market

As the week began, bitcoin and other cryptocurrency have been hit hard by the recovery. The decline is due to several factors. Large corporations may announce earnings or show that they have disposed of large amounts bitcoin.

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The FOMC will be starting Tuesday and an announcement about it is likely to come Wednesday. So basically, while this is turning out to be a big week for the financial market, it doesn’t necessarily mean that the market would see any good price action.

Bitcoin also failed to surpass its 200-week moving mean. The resistance encountered at this point has forced the price lower. Bitcoin has seen a downward trend, and it is likely that bitcoin will test $20,000 over the next days.

Featured Image from Finance Magnates. Chart by TradingView.com

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