Bitcoin, the world’s largest cryptocurrency by market cap, tumbled below the $45,000 price level this morning, leading to a market-wide price carnage as a result.
Data further shows over $328 million worth of crypto positions were ‘liquidated’ this morning, with over 87,000 individual trading accounts affected. The market, however, seemed to temporarily stabilize at press time, putting a stop to what was the second sudden drop in as many weeks in the crypto market.
Come and gone
‘Liquidations,’ for the uninitiated, occur when leveraged positions are automatically closed out by exchanges/brokerages as a “safety mechanism.” Futures and margin traders—who borrow capital from exchanges (usually in multiples) to place bigger bets—put up a small collateral amount before placing a trade.
In traderspeak, ‘longs’ occur when investors are betting on prices of a certain asset to rise, while ‘shorts’ occur when they are betting against that asset.
Bitcoin ‘longs’ took
Źródło: https://cryptoslate.com/328-million-liquidated-as-bitcoin-breaks-below-45000/
