Bitcoin, the world’s largest cryptocurrency by market cap, fell below $ 45,000 this morning, sparking a market-wide carnage.

Bybt data shows that more than $ 379 million of positions were liquidated today, affecting over 87,000 individual trading accounts. However, at press time, the market appears to be stabilizing temporarily, which has halted the second abrupt decline in the crypto market in recent weeks.

The source: Bybit

Liquidation takes place when leveraged positions are automatically closed by stock exchanges / brokers as a “safety mechanism”. Futures and margin traders – who borrow money from exchanges (often in multiples) to place larger bets – collateralize a small amount before placing a trade.

In trader jargon, a long occurs when investors bet on the price of a particular asset to go up, while a “short” does the opposite.

For Bitcoin, the data shows that longs accounted for 65% of the total $ 94 million liquidated today, or about $ 62 million.

The general trend also seems to have changed slightly. Looking at the 4-hour BTC price chart, Bitcoin broke below the $ 46,800 support and slid near the $ 44,200 support. It has lost 13% of its value in the past week alone and the next support is at $ 40,000 if the decline continues.

Source: TradingView

Other cryptocurrencies like ether also liquidated up to $ 72 million, of which long accounted for $ 47 million. Solana, Cardano, XRP and Polkadot followed with liquidation values ​​of $ 33 million, $ 30 million, $ 16 million and $ 14 million, respectively.

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Annie

According to Cryptoslate

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