On April 12, the price of Bitcoin and other well-known altcoins spontaneously declined, causing enormous liquidations and an unanticipated blow to the crypto industry. There are several possible explanations for this widespread price decline, but the cause is still mostly unclear. One such explanation is the recent correction in US stock market prices.
Almost $500 million was sold in an hour during the flash crash in cryptocurrency
CoinMarketCap data shows that Bitcoin dropped by 4.49% during the previous day, reaching a low of $66,052. The market was impacted by BTC’s collapse as anticipated; well-known altcoins Ethereum and Solana saw daily losses of 8.12% and 12.16%, respectively.
As previously mentioned, according to Coinglass statistics, the total amount of cryptocurrency liquidations in the last day was $877.21 million. As a result of these losses, 277,843 traders lost their leveraged holdings. Out of these data, $782.98 million came from long positions, while short sellers lost only $94.24 million.
Notably, a widespread decrease in prices resulted in the closing of leverage positions worth $467 million in less than an hour. The largest single liquidation order, worth $7.19 million, happened in the ETH-USD market on the OKX exchange, while the largest quantity of liquidations, $369.85 million, was recorded on Binance.
It’s interesting to note that the price loss of Bitcoin coincided with a decline in the US stock market, with the S&P 500 index falling 1.6% to as low as $5,108. Recent CPI statistics revealed that the inflation rate increased to 3.5% year over year in March, preceding this market catastrophe.
Bitcoin’s Network Expands As the Halving Draws Near
Positively, in advance of the April 19 halving event, Bitcoin has observed an increase in non-empty wallets on its network. 370,000 more Bitcoin wallets with live currencies were reported to have been added in the last six days, according to blockchain analytics company Santiment. It’s interesting to note that the analytical team is encouraging investors to stick with this upward trend during the Bitcoin halving.
With a 44.80% growth in its daily trading volume, which is currently valued at $43.80 billion, Bitcoin was trading for $66,882 at the time of writing. Nonetheless, the price of Bitcoin hasn’t been very strong lately, falling 6.20% and 1.33% over the last 30 and seven days, respectively.
April 2024, Cryptoniteuae
