Liquidation Hits 428,000 Bitcoin Investors as Crypto Trades Below $27,000
- There was a massive sell-offs on Wednesday, May 11, 2022 as bitcoin continued it crash wiping off about $1.22 billion from the crypto market cap
- About 428,000 bitcoin investors lost billions of dollars as the largest cryptocurrency bowed before the strong dollar, selling below $27,000
- Experts have predicted that the crash was due to the US Federal Reserve raising its interest rates to 1 per cent, the biggest in over 20 years.
Bitcoin continued its downward spiral on Wednesday as the premier crypto traded below $27,000 in a massive loss that affected 428,000 investors who lost $1.22 billion in 24 hours.
Many compared the slide in the crypto market to what was witnessed in the 2008 market crash while others have associated it with massive sell-offs.
Source: Facebook
Market decline hits crypto ecosystem
Nairametrics reported that the whole crypto market cap has declined by approximately 20 per cent as it currently stands at $1.16 trillion with an indication of the market losing its trillion dollar status.
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Other altcoins posted declines of 40 per cent and above in the last seven days as the sell-offs continue.
The Luna token has been the major focus which is the native token of the Terra blockchain, trading as low as $0.28, after losing its dollar peg.
Stronger dollar force cryptos into liquidation
Liquidation refers to the time an exchange forcefully closes a trader’s leveraged position because of a partial or total loss of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position. It occurs in both margin and futures trading.
The losses started when the US Federal Reserve increased its interest rates to 1%, the biggest increase in over 20 years, handing over its policy decision last week.
Bitcoin continues to slide, trades $34,000 over the weekend
Legit.ng has reported that the premier Cryptocurrency, Bitcoin has continued to see its fortunes go down after a sell-off in the US last sent the crypto market into a shockwave prompting it to slide by 10 per cent, a CNBC report says.
The world’s largest crypto was lower by about 3 per cent at $33,000,438.03 on Sunday, May 8, 2022, a Coin Metrics Data said. Bitcoin has been shedding prices this year, trading in a narrow range as it moves to reclaim its 2021 highs.
Bitcoin is down by 50 per cent from its high of $67,000,802,30 in November last year.
Source: Legit.ng
