Bitcoin fell under $43,000 for the first occasion since February 2021, causing a 10% drop in the digital currency industry in the previous 24 hours. Upwards of $2.4 billion in trading positions is liquidated as a result of the recent downturn of digital currency including $2 billion in long positions and $400 million in short positions.
As per the most recent statistics from cryptocurrency analytics website Bybt.com, almost 304,000 digital currency investors were liquidated in a single day due to extreme fluctuations. The biggest Bitcoin liquidation order, worth $90 million, was placed on the digital currency platform Huobi.
On Monday, the total market capitalization of cryptocurrencies fell under $2 trillion. Following Elon Musk’s latest tweets, Bitcoin, Ethereum, and Binance Coin all fell significantly. On Sunday, Tesla’s CEO referred to Bitcoin as a centralized digital currency. Following his comment, BTC plummeted, losing upwards of $100 billion in market capitalization in just a few hours.
“Everyone has been watching BTC fall, crashing 35% from all-time highs, just within a month. Remember gravity and volatility? They exist. Some of the new cryptocurrency market entrants are about to have their first taste of risk management. When combining fundamentals such as positive net inflows of BTC to exchanges, mixed with the previously mentioned technicals of lower high and lower low, we can ignore what large egos and influencers say, and see that a pullback was bound to happen,” Justin Chuh, Senior Trader at Wave Financial stated.
The Recovery of the Digital Currency Market
Following the latest drop, the total market value of digital currency assets has risen marginally. Bitcoin soared beyond $45,000 in the last few hours, bringing the total value of the digital currency to almost $100 billion. Since reaching $3,500, Ethereum, the world’s second-most expensive digital currency, reclaimed its market cap of $400 billion. Binance Coin (BNB), the world’s third-biggest digital currency, is currently traded at over $530 and has a market capitalization of more than $80 billion as of this article. Bitcoin has a market share of about 40% of the digital currency market.