The 8% drop in Bitcoin (BTC) leads to $640M in liquidations

Fri 19 Nov 2021 ▪ 11h54 ▪ 2 min read — by Mary Anderson

The global correction of the crypto market continues. After the latest drop of Bitcoin, long positions totalling over $500 million (~£370 million) were liquidated.

Bitcoin continues to fall, followed by the rest of the market. So, more and more players fix their positions, which, in turn, leads to avalanche-like sales and, as a result, losses among those who decided not to close deals.

According to u.today, at the moment, the volume of liquidations of long positions on numerous centralised exchanges has already exceeded $640 million (~£474 million). Earlier, on 15th November, BTC already made a dash down. Then, due to a large number of transactions with leverage, the volume of liquidations amounted to about $500 million (~£370 million).

Such behaviour of Bitcoin indicates that its last rally was fueled by a large number of overleveraged positions. Something similar happened this May when BTC reached ATH and then lost about 50% of its value.

In the last few months, more and more exchanges have started to adhere to safe trading practices, limiting the available leverage. However, regulators and representatives of central banks often criticise digital asset trading due to market manipulation, which victimises traders with a high proportion of borrowed capital.

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Mary Anderson

I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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