As the cryptocurrency market goes red once again, the total value of liquidated holdings is rising.
Bitcoin’s price dropped below $20,000 for the first time in about six weeks, accelerating its previous price declines.
The alternative currencies also suffer, resulting in roughly $400 million in liquidations by traders with excessive leverage.
In the last week or so, Bitcoin’s price has been rather constant, as reported by CryptoPotato. After losing $4,000 over the previous week, BTC spent most of this one at the $21,000 level. A few days ago, it challenged $22,000 but to no effect.
Yesterday, it had settled at $21,500, but then Fed Chair Jerome Powell addressed the country once again, reiterating the central bank’s earlier position on how to combat inflation.
However, the crypto markets immediately responded with price declines. Bitcoin, for example, fell by $1,000 in hours and continued to decline later on. As a result, it just fell below $20,000 for the first time since mid-July.
The condition of the alternative coins is not superior. Some, like ETH, SHIB, and AVAX, have seen double-digit losses. Ethereum has fallen below $1,500 after soaring over $1,700 only two days earlier.
The market capitalization of cryptocurrencies as a whole has fallen far below the desired $1 trillion level, while most altcoins have seen more severe losses.
This increased volatility has damaged traders with excessive leverage. According to CoinGlass data, the total amount of liquidations over the previous 24 hours has reached about $400 million.
More than 125,000 traders have been wiped out so far, with the biggest position liquidated being on OKX with the BTC/USDT trading pair, valued at $3.5 million.
Also Read: The United States Makes Clear That Crypto Decentralization Is Not A Protection Against Sanctions
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