Main Reasons Of $242 Million Positions, 68,255 Traders Liquidation, As Bitcoin Falls Below $40K, Ethereum Below $2700

Bitcoin has fallen below $40K while Ethereum is trading below $2700.

$242 Million Positions, 68,255 Traders Liquidated As Bitcoin Falls Below $40K Amid Russia Attack Europe’s Largest Nuclear Power Plant.

We might see more intense bleeding if the King crypto cannot find support at $38K. The fresh downfall caused some severe trading positions liquidations. According to Coinglass data, $242 million positions were liquidated in the past 24 hours, of which $116M million in BTC and $45 million in ETH.

A liquidation occurs when an exchange forcibly closes a leveraged trader’s position as a safety mechanism due to the trader’s partial or total loss of the initial margin. This occurs primarily in futures trading, which only tracks asset prices instead of spot trading, where traders own tangible assets.

The fall in bitcoin prices has led to a sharp contraction in altcoin markets. More than 68,255 traders have been liquidated in the last 24 hours, with most losses coming from US trading hours. More than 87% of the liquidation was in long positions, futures contracts in which traders were betting on price increases. In total, $205M Long positions while 36M in short positions were washed out.

$69.1M of liquidations occurred on Cryptocurrency exchange OKEx, the highest among major exchanges, while traders on Binance suffered losses of $68.6 million.

Since the start of 2022, the crypto market has been unable to carry on the uptrend and has continually remained below the $2T market cap. As for now, the total market cap is way below $2T, currently sitting on $1.74T, according to Coinmarketcap.

If BTC cannot recover from the current fall, it will confirm the bearish trend to take the king of crypto retrace back to $30K.

Peter Schiff, while analyzing the Bitcoin chart, says:

“When Bitcoin breaks below the lower end of this channel, look out below. It will likely crash to the lower support line. Most HODLers who pledged Bitcoin as collateral for loans will be forced liquidated at prices much lower than what will prevail at the time margin calls are made.”

When #Bitcoin breaks below the lower end of this channel lookout below. It will likely crash to the lower support line. Most HODLers who pledged Bitcoin as collateral for loans will be force liquidated at prices much lower than what will prevail at the time margin calls are made. pic.twitter.com/Y5i3kr75vr

— Peter Schiff (@PeterSchiff) March 5, 2022

Crypto experts give Two main reasons for the Bitcoin and stock current fall: Russia attacked, caused a fire, and took over Europe’s largest nuclear power plant in Ukraine early Friday.

The recent US jobs data published by Yahoo finance shows Payrolls rise by 678,000 as the unemployment rate falls to 3.8%. A consistently improving labor market will help Federal Reserve to begin raising interest rates sooner than later. Head of Federal Reserve Powell said he would support a 25-basis point interest-rate hike in the Fed’s next meeting.

Dow, S&P, and Nasdaq futures dropped nearly 1%. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq were already tracking weekly declines. All three stock benchmarks fell Thursday, with Nasdaq leading the way lower with a nearly 1.6% retreat.

Bitcoin is again proving that it is highly correlated with the stock market.

#Bitcoin Weekly starting to look a lot less promising unless we can rebound soon

In this global environment, you should always consider a range of possibilities

Whenever Stocks gets unstable it spells trouble

I am still remaining cautious and neutral until further notice pic.twitter.com/iwDd1nDmlI

— Kevin Svenson (@KevinSvenson_) March 5, 2022