Bitcoin (BTC) is trading at its lowest level since mid-December 2020 on June 13, but the bottom may still be out.
The cryptocurrency crash has not spared many traders. During the last 24 hours, there has been a very rapid decline in the price of cryptocurrencies. About a billion dollars have been liquidated so far, and it’s not over yet , as bitcoin continues to fall, today it’s trading on $20,234 .
The liquidation of more than 940 million in the cryptocurrency, can be called nothing short of a historic fall. The event that shook the traders’ market occurred because of the largest digital assets in the space.
by Tradingview
Most of the liquidations occurred for traders with long positions, but short traders were not left untouched either.
In the last 24 hours alone, 253,000 traders were liquidated, and this number continues to grow.
Long positions accounted for about 64% of the liquidated traders, about $600 Million, while short positions accounted for about 36% of the losses, which amounted to $346 Million.
Bitcoin suffered the most, there were more than 16.84 thousand BTC, equivalent to $399.38.
Ethereum was not far behind Bitcoin: 298.96 thousand ETH, or $356.82 million were liquidated.
Owners of Solana, which has been hit harder than major currencies, lost 699.32 thousand SOL or $18.59 Million in the last 24 hours after Solana plunged below $30.
Other currencies followed with large losses in descending order – FLM with $11.99 Million, GMT with $7.86 Million, ADA with $7.53 Million and TRX with $5.85 Million, XRP $5.54 Million, LUNA $5.19 Million, DOGE $4.84 Million and AVAX $4.72 Million. Litecoin had losses of $4.60 Million.
It all started with an alarming report on the U.S. consumer price index for May on Friday, which caused an inflationary shock in the global market. Fed rates are expected to be raised again, which this time will probably be higher. The Fed meeting is scheduled for June 14 and will last for 2 days.
Due to the turbulence in the markets, popular cryptocurrency company Celsius (CEL) suspended clients’ withdrawals, which supported the wave of panic. Such a move by the largest De Fi platform and one of the largest cryptocurrency lenders influenced the sharp drop in currencies more than anyone else .
“Due to extreme market conditions today, we are announcing that Celsius is suspending withdrawals, exchanges and transfers between accounts. We are taking this action today to help Celsius meet its withdrawal obligations over time.”
When the Fed raises interest rates, demand for technology stocks and risky assets such as bitcoin and other cryptocurrencies goes down.
How much demand for cryptocurrency remains when all the liquidity runs out is an open question.
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