1 million crypto traders see nearly $10 billion in liquidations

Traders saw nearly $10 billion in liquidity Sunday morning as the crypto market went through a deep downturn, according to data from market tool Bybt. More than a million individual accounts have been closed.

Today’s episodes pic.twitter.com/ujSlotcglr

– red (@redxbt) 18. April 2021

Vush

Liquidations occur when traders borrow excess capital from brokers (i.e. on margin or futures) to place larger bets on the assets they trade. You pay a fixed fee for this, while the exchanges close these positions at a predetermined price when the trader’s deposit equals the loss on that position. Such a transaction is then considered to be liquidated.

And in the euphoria of last week, when bank executives declared that bitcoin would eclipse gold valuations and reach new all-time highs, traders likely borrowed more money than their books would allow and contributed to what has become an overheated, inflated market.

Saturday night was the balloon needle. The markets fell nearly 10% – some altcoins saw losses of up to 25%, while traders ended up losing $9.85 billion.

Of this amount, $8.68 billion was liquidated in long trades as traders gambled on price increases. Finance swept $4.6 billion, Huobi $1.59 billion and Bibit $1 billion.

Crypto is being hit by.

Bitcoin (BTC) alone saw $5.6 billion in liquidations, followed by Ethereum (ETH) with $1.1 billion and XRP with $462 million.

Elimination of a million traders. The largest liquidation order took place on the bitcoin/USDt pair for $68.73 million.

Meanwhile, some market veterans have commented on the price action. All overworked dockworkers were punished. Losses of 20 to 40 percent are increasingly common and occur every few weeks, says Bobby Ong, co-founder of market analysis tool Coingecko.

He added: Be careful when using the lever. There will be a common sharp V-shaped recovery.

It was a good start to the weekend. All those who have been there too long will be punished. Losses of 20-40% are becoming more frequent and occur every few weeks. Be careful when using the lever. There will be a common sharp V-shaped recovery.

– Bobby Ong (@bobbyong) April 18, 2021

At least the newbies know this now: Cryptocurrencies don’t always go up.

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