What happened: Bitcoin, Ethereum, and other major cryptocurrencies fell over 17% as the crypto market was dominated by red candles.
Bitcoin was trading at $ 46,500 at press time, and its market cap fell below $ 1 trillion for the first time since it topped a week ago.
The second largest cryptocurrency by market capitalization fell even further, falling over 23% to $ 1,452 at the time of writing.
Why it matters: The sell-off in the crypto market had a significant impact on traders’ positions.
Over 474,968 traders have been liquidated in the past 24 hours, with a total of $ 4.4 billion liquidated through crypto exchanges.
According to the Crypto Exchange Data Aggregator Bybt, this was the largest liquidation event in the history of Bitcoin futures, with a record amount of liquidated long positions.
474,968 dealers have been liquidated in the past 24 hours. A total of $ 4.4 billion was liquidated! This is the craziest day in the history of #bitcoin futures.
– Bybt (@bybt_com) February 23, 2021
What else: Several crypto exchanges, including Binance and Gemini, have reportedly seen a decline in bitcoin reserves.
As the exchange’s Bitcoin reserves continue to decline, the cryptocurrency’s liquidity is shrinking. As a result, even a small volume of trade can have a big impact on price.
On-chain data from Santiment showed that a single wallet address contributed to bitcoin’s price tracking.
As we noted yesterday, there was an 11-fold increase in exchange rate inflow that triggered # Bitcoin’s price correction of $ 58.3,000 USD #ATH. Further combinations of data revealed that one address was responsible for the second largest BTC transaction of the year, an import of 2,700 tokens into the wallet pic.twitter.com/CTgtJr27np
– Santiment (@santimentfeed) February 23, 2021
The user of the address in question withdrew 2,700 BTC tokens, which at the time were worth nearly $ 160 million, from being exchanged for their individual wallet.
Image: Pepi Stojanovski via Unsplash
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