Main Reasons Of Crypto Market Fall, In Few Hours Market Liquated More than $800 Million Worth Of Trading Positions And 208760 Traders

The Crypto market mainly falls sharply because of its fast nature. There are two main reasons for this fall.

As the dollar strengthened and positive economic data from the US shook investors’ grip on risky financial assets, bitcoin fell to $42.5 thousand. The intraday sell-off was triggered after the Federal Reserve indicated that an interest rate hike could occur in March rather than the usual time frame.

US traditional markets also suffered. The shares of Nivida, AMD, and Adobe were down above 5%, S&P 500 and Dow Jones Industrial Average also closed in the red. Nasdaq pulled back 3.34%.

The other reason is that Bitcoin faces mining problems from Iran and Kazakhstan. In Kazakhstan, wide protests are erupting because of the electricity shortage. The government has shut down the internet nationwide to stop the unrest that has forced local miners to stop mining activities. At the same time, Iran has stopped all kinds of mining operations due to the winter season.

NDTV Writes:

“The big slump occurred as the US Federal Reserve indicated it could move up its timetable for raising interest rates to mid-March. The US Federal Reserve is essentially going to stop printing money and make it more expensive to borrow to steady the economy and keep rising inflation in check. Meanwhile, Kazakhstan, the country that accounts for a large 18 percent of the Bitcoin network’s hash activity, witnessed a nationwide Internet shutdown, causing BTC’s hashrate to drop by 13.4 percent — reflecting a sharp fall in value.”

Crypto Liquidations In 24 Hours

In the past 24 hours, the crypto market liquidated more than $800M positions and 208760 traders. BTC, ETH, SOL, BNB. ADA, DOGE, SHIB all went down more than 10%.

BTC traders lost $317M worth of trading positions while ETH traders lost $163M. Other than BTC and ETH, SOL got the biggest hit with $18.9M worth of trading positions liquidated in the past 24 hours.

Exchange Liquidations

In total, the exchange lost $810M in 24 hours. OKEX lost $240M worth of trading positions, of which $229.86M worth of long positions were liquidated. Binance traders suffered the loss of $236.10M, of which $204.13M belonged to long positions.

The data from coinglass also reveals that in the past 24 hours, $637.68 million worth of leveraged longs positions got liquidated as Bitcoin fell below $43K.

If BTC cannot recover from the current fall, it will confirm the bearish trend to take the king of crypto retrace back to $30K. Since yesterday, the total market cap has been down 8.53%, currently standing at $2.04 trillion.