How Bitcoin’s market cap has fallen below $1t

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A few days after Bitcoin’s market cap soared to over $1 trillion, it’s back to square one for the market’s leading cryptocurrency. At the back of a 17 percent price drop on the charts, the market cap of the cryptocurrency again dropped below the above-mentioned amount, with the same observed lingering around the $900 billion mark at press time. In reality, the drop saw BTC go as low as $45,767 on charts.

What’s more, the last 24 hours have seen the biggest liquidation case in Bitcoin Futures. Crypto-exchange data aggregator Bybt called it “the craziest day in Bitcoin Futures history.” According to the same, over 470,000 traders’ positions have been liquidated for $4.4 billion through crypto-exchanges.

 

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Much of these liquidations have been seen across long-term leveraged positions, with many traders clocking their most substantial losses since the start of the bull run.

It should be noted, however, that some traders reported being unfairly liquidated as a result of such “flash crashes” in some exchanges.

In reality, reports indicate that the price of ETH for Kraken was briefly down to $700, before rising up to $1700. Similarly, some traders state that the price of ADA for Kraken reportedly reached $0.15 briefly, causing several traders to be “unfairly liquidated.”

 

In reality, Kraken was swift to comment on the said flash crashes, with the platform reporting that there was a surge in sales volume across multiple exchanges. However, most traders were not persuaded of the exchange’s response.

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“Don’t try to say that valid sales orders have driven Eth to $700. This didn’t happen anywhere else in the entire industry,” said one user on Twitter.

According to some, the exchange problems have something to do with Kraken’s lack of adequate liquidity.

Market makers prefer to delete their bots when there is overvolatility in the market, essentially eliminating all liquidity, causing one stop-loss after another.

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