On Tuesday night, more than $1 billion crypto positions were liquidated, leading to another plunge in the still-recovering market, driving cryptocurrency prices down once again.
At press time, bitcoin was trading at $31,562, losing 11% of its value for the past 24 hours. Ethereum, on the other hand, fell below the $2K mark and is now changing hands at $1,881, staring at a decline of 15.7% for the past day.
On his Twitter account, Lex Moskovski posted an image that showed the massive liquidations that happened across nine major digital currencies.
Approximately $1 billion was liquidated across 153,000 accounts in just 24 hours, with bitcoin accounting for more than half of the total liquidation, $572.94 million to be exact. This meant 17,390 bitcoins were sold off during that short span of time.
Heading towards bear market
This “unfortunate development” has driven the market into a downward frenzy and most cryptocurrencies are now on a decline and the charts are filled with red numbers indicating negative reaction to the massive sell-off.
Some experts believe that with the prices being down that much with no good sign of going up soon, the market might be heading towards another bear run.
With anti-crypto events such as China’s imposition of the ban of cryptocurrencies from its financial institutions and its closure of mining farms resulting in a significant fall in the world’s hash rate, it is not a stretch to think that the current market is leaning towards a bearish sentiment.
Other altcoins suffer too
It is not just bitcoin and ethereum that is suffering now. For the past 24 hours, cardano (ADA) is down by 18.1%, dogecoin (DOGE) by 37.1%, XRP by 21.4% and binance coin by 21.4%.
The timing couldn’t have come worse, as the market is only recovering following the infamous flash crash that happened just last month.
Image courtesy of Cointelegraph News/YouTube