By Shelly Melancon (Switzerland)
Hopes of a bullish run have suffered a massive setback as the crypto market goes on a lengthy recess. The huge correction is reported to have caused about $2.6 billion worth of longs in the futures market to be liquidated. Affected traders are currently licking their wounds owing to the event.
Bitcoin slipped to $43,000 on Tuesday just after seeing $52,000 the day before. According to the data provided by crypto data aggregator Bybt, liquidations occurred across various exchanges with derivatives exchange Bybit taking the most hit.
Derivatives Exchange, Bybit Leads on Liquidation List
As revealed by the data, Bybit accounts for 35.27% of all liquidated positions while Huobi is in second place accounting for 30.01% and leading crypto exchange Binance takes the third position registering 17%. The largest single liquidation order of $43.5 million happened on Huobi exchange. All these losses are reported to have occurred just within an hour.
Almost 330,000 traders have had their long positions shut down in the last 24 hours. Flagship cryptocurrency shed nearly $10,000 off its price. It turns out that El Salvador’s Bitcoin day didn’t generate enough momentum to see the top crypto asset go beyond the shores of $52,000 which it continued to range at until the unexpected decline.
Also read:El Salvador’s Bitcoin law received the force of law in the early hours of September 7, with predictions of an uptrend becoming rife. However, the crypto market has hugely disappointed these expectations.
Interestingly, El Salvador bought 400 Bitcoin on the same day and capitalized on the huge decline to top up its holdings with additional 150 Bitcoins, thereby bringing the total amount of Bitcoin held by the national government to 550 Bitcoins.
Bitcoin Dominance Settles at 40%
The market dominance of the leading cryptocurrency is currently sitting at 40.34% according to CoinGecko as altcoins encountered more losses than the former. Market capitalization is not left out of the spate of losses as it shed $384 billion of its overall amount in the wake of the dip.
Despite the sudden dip, market observers are still optimistic. Perhaps it might be that the upswing had become a tad excessive and the market needed to go on a break before we witness another uptrend that is likely to take flagship cryptocurrency and some other altcoins including Ethereum to new peaks.
As of press time, Bitcoin has found its way back to $47k, about 8% short of its price earlier today. The same way it dragged altcoins such as Cardano, Solana, Litecoin, Stellar (XLM) and Bitcoin Cash (BCH) up as it surged to $52k, it has led them back to the depths as well. However, Solana is proving to be a fighter, moving on its own merits after witnessing an ATH of $193 on Tuesday.
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