Bitcoin’s aggressive drawdown to the $ 45,000 region provoked panic in the market and the liquidation of cryptocurrency positions worth more than $ 5.6 billion.
Course bitcoin (BTC) made an unexpected and large-scale collapse, having gone at the moment to the $ 45,000 area. At the time of writing, the price is stabilizing in the $ 46,000 area, sagging by 16 +% from the opening price.
It is worth noting that BTC had already given investors cause for concern the day before, having formed a 13% red candlestick on the 4-hour chart.
As a result, February 22 became a record day for Bitcoin, marking the formation of a trading range of unprecedented breadth. At the moment, the price deviated from the opening level by $ 10,877. For comparison, the average width of the intraday range for BTC as of the current year is $ 3,765.
MTC schedule. Source: TradingView
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Wave of liquidations
Just a few hours ago, the editors of BeInCrypto already referred to Bybt’s data on the scale of liquidation of positions on the crypto market. However, during this time, the indicator managed to grow by almost $ 1 billion more and, according to the latest statistics, already amounted to $ 5.64 billion for 645,278 positions on crypto exchanges.
Liquidation of positions. Source: Bybt
The lion’s share of these liquidations was predictably in Bitcoin ($ 2.41 billion). Also, market participants liquidated positions in ETH for $ 1.35 billion, and for Litecoin (LTC) and Ripple (XRP) – almost $ 200 million for each of the currencies.
Liquidation of positions on Binance Coin (BNB), Bitcoin Cash (BCH), EOS, Polkadot (DOT), and Cardano (ADA) combined totaled $ 663 million.
The Bloody Monday meat grinder also hit the decentralized finance (DeFi) sector painfully. According to DeBank, the total size of all assets blocked in DeFi-protocols (TVLs) decreased from $ 44 billion to $ 36 billion. Thus, the DeFi market lost 18% of its value in just one day.
Mask, I you know?
Some members of the crypto community associate the current market dynamics with the “Musk effect”. Recall that recently the head of Tesla disappointed many participants in the crypto market his unexpected skeptical statements about bitcoin. So, on February 20 he statedwhich considers BTC and ETH to be overvalued.
Elon Musk has long been rightfully considered one of the most authoritative influencers in the crypto industry. So, it was his comments that caused Rally DogeCoin by 800 +%. He also became one of the drivers behind the last Bitcoin rally to new all-time highs.
Then, only time will tell if the current situation is a natural correction of an overheated market or if we are seeing a belated reaction to Musk’s comments.
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