Cryptocurrency Liquidations Accelerate Amid Market Volatility

Cryptocurrency assets saw extreme volatility over the weekend as Bitcoin touched a low of approximately $31,000. The overall market cap of digital currencies dropped below $1.3 trillion for the first time since February 2021.

The latest drop in the cryptocurrency market accelerated liquidations during the last 24 hours. According to the latest data published by crypto firm, bybt.com, $1.53 billion worth of cryptocurrency positions got liquidated within a single day.

Approximately $1.1 billion worth of long cryptocurrency positions were liquidated as BTC, ETH, XRP and DOGE lost significant value. Bybt mentioned that 296,000 traders got liquidated during the latest market volatility.

The cryptocurrency market posted a recovery of nearly $150 billion in the last few hours and that triggered liquidation of more than $400 million worth of short crypto positions. Bitcoin crossed $35,000 on Monday, which is a jump of nearly 15% from the recent low. Ethereum is currently trading near $2,100 after posting a spike of more than 20% in the last few hours.

Last week, Finance Magnates reported about the liquidation of more than 300,000 crypto traders amid extreme market volatility.

Impact of China and Tesla on Cryptocurrency Market

Recently, Reuters reported about China’s strict crypto measures. The country banned financial companies from services related to cryptocurrency Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. Additionally, Asia’s largest economy introduced restrictions regarding crypto mining in the region. Elon Musk, CEO of Tesla remained vocal about Bitcoin and other cryptocurrency assets during the last few days. In a Tweet, Musk called Bitcoin a highly centralized cryptocurrency and mentioned that BTC mining companies are controlling the market. “A single coal mine in Xinjiang flooded, almost killing miners, and BTC Hash Rate Hash Rate A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain A hash rate is the measure of a cryptocurrency miner’s performance and a key security metric. In the context of mining, the more hashing or computing power in a given network, the greater its security and its overall resistance to attackMining hashrate is a key security metric. The more hashing (computing) power in the network, the greater its security and its overall resistance to attack. Hash rate is also a measurement of the output of a device that is used to add transactions to a blockchain Read this Term dropped 35%,” Musk said in a tweet.

The latest announcements by China and Musk have had a negative impact on the cryptocurrency market as the total market cap of digital currencies lost nearly 45% of its value in just two weeks. As of writing, the crypto market cap stands at around $1.45 trillion.