A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion
The liquidation in the past 24 hours beats the ones seen during March Crash, aka Black Thursday, and in late Feb. Propelled by Treasury rumors, high leverage, and hash rate taking a hit, BTC went down to $51,300, and Ether touched $2,000.
The cryptocurrency market crashed overnight, and the losses spilled into Sunday as well.
Losing as much as 30% of their value in the past 24 hours, about $300 billion have been wiped out from the market.
Bitcoin price went as low as $51,300, and Ether price touched $2,000 on Coinbase.
This crash could have been propelled by Treasury rumors. The market was spooked by the speculation that the US Treasury is looking to charge several financial institutions for money laundry using crypto.
I don't find this credible. The tweet itself is fishy: Treasury doesn't charge money laundering (DOJ does) & a case against several FIs at once would be unusual. Also, criminal investigations are kept strictly confidential & rarely leak. I'm not convinced by unnamed "sources." https://t.co/71opA5cUby
— Jake Chervinsky (@jchervinsky) April 18, 2021
Another potential reason could be the drop in the Bitcoin hash rate, which has now fully recovered while prices are in the process of it. As we reported, there has been a coal mine accident in Northwest China, leading to blackouts in the area and mining pools losing over 20% of their hashing power.
As Charles Edwards of Capriole Investments noted, “One province in China represents a significant share of the Bitcoin network,” hence the result.
Price and hash rate has always been correlated.
This is BTC price vs today's hash rate collapse (from the Xinjiang blackout). pic.twitter.com/mywEZLHlA0
— Willy Woo (@woonomic) April 18, 2021
Much like always, extreme leverage exacerbated the already bad situation. Setting a new record and beating the March 2020 crash, 1,063,216 traders were liquidated for an eye-watering $10.1 billion in the past 24 hours.
On March 12th, Black Thursday, the record was set just above $4 billion, while the market took another heavy beating on Feb. 21st was just under $6 billion. But now on the chart, they are just a blip.
Of course, more than half of this new record was thanks to Binance degen traders, accounting for nearly $5 billion of it.
ETH -11.51% Ethereum / USD ETHUSD $ 3,810.33
-$438.57-11.51% Volume 79.39 b Change -$438.57 Open $3,810.33 Circulating 115.85 m Market Cap 441.44 b 14 h Balancer Labs Launches V2 With Promises Lower Fees, Higher Yields, and Easy Interface 17 h Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov 17 h Bitwise Launches Crypto Industry Innovators ETF After a Green Light from the SEC XRP -11.39% XRP / USD XRPUSD $ 1.31
-$0.15-11.39% Volume 11.33 b Change -$0.15 Open $1.31 Circulating 35.11 b Market Cap 46.03 b 1 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report 5 d BoE Governor Andrew Bailey Says Crypto Investors Trading In A Bubble 5 d Ripple Reports 97% Growth In XRP Sales For Q1 2021 Amid SEC Lawsuit BNB -11.06% Binance Coin / USD BNBUSD $ 594.07
-$65.70-11.06% Volume 5.99 b Change -$65.70 Open $594.07 Circulating 153.43 m Market Cap 91.15 b 1 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report 1 d Ethereum is Literally Unusable; Fees Surge to New ATH as Dogs Take Over the Network 2 d SHIB Token Is Sending Ethereum Gas Prices Higher DOGE -19.30% Dogecoin / USD DOGEUSD $ 0.40
-$0.08-19.30% Volume 11.55 b Change -$0.08 Open $0.40 Circulating 129.58 b Market Cap 52.12 b 20 h USD Index is Crashing; It Has Been Historically Bullish for Bitcoin 1 d Palantir says Bitcoin Is 'Definitely on the Table' to be Put on the Balance Sheet 1 d Tesla's Elon Musk Considers Accepting Dogecoin As Payment For Cars in New Twitter Poll LTC -17.69% Litecoin / USD LTCUSD $ 317.02
-$56.08-17.69% Volume 10.22 b Change -$56.08 Open $317.02 Circulating 66.75 m Market Cap 21.16 b 1 d Positive Momentum for Ethereum Continues with Another $60 Million in Inflows: CoinShares Report 1 d Tech Stocks Dragging Bitcoin, Ether, & Crypto's Down, But 'Fundamentals Still Strong' 6 d Ethereum Fork ETC Trading 12% Higher on Coinbase, CAKE Wicks Down Over 13.5% on Binance
This wipeout normalized the funding, which went negative and still is after a long time, with the highest Bitcoin funding rate as of writing at 0.1347% on Bybit. During the whole ordeal, Bybit actually traded 4.20% below the spot.
Although it is yet to be seen, the market looks to be bottomed given that the leverage ratio is decreased, though still high. In fact, the market is not in fear but is still greedy, with the Kimchi premium hitting 26% today in the aftermath of this, as per Crypto Quant.
I guess I might BTFD. #Bitcoin
— Rafael Schultze-Kraft (@n3ocortex) April 18, 2021
However, according to trader Wolf, bulls need to reclaim $56,900, or bears will be in control that could further take us down to $45,300 because “this would be the first time since September that we lose important support,” of daily MA50. Another trader Bitcoin Jack actually sees a second dump likely, which could either be “truncated or much deeper.”
Overall, with futures in backwardation, low liquidity on the weekend, massive arbitrage between exchanges, and spot bids stacked as Avi Sanyal, Head of Trading at BlockTower, says, instead of panic selling, this is time to buy the dip.