Bitcoin crashed by over 7% as liquidation sees all-time high

After tagging over $60,000 USD and seeming to break through the barrier of resistance, the Bitcoin market has rejected the mark and fallen by over 7% in the past 24 hours to below $55,000 USD.

The overall cryptocurrency market has taken a knock as a result of the rejection, with most tokens showing red.

Source: Coin360

According to Glassnode founders, the fall was a result of record-high Bitcoin liquidation with more than $500 million USD with of ling liquidation occurring in just over an hour’s trading. As noted by Jan & Yann, more than half of the open future contracts were leverages by more than 20 times prior to the margin calls.

Conflicting data from Bybt points that more than $800 USD was liquidated in under 15 minutes.

Whatever the case, it’s obvious that Bitcoin took a knock from investors taking profit from their cryptocurrency holdings.

Datamish insights show that nearly 300 positions worth nearly $95 million USD were liquidated on BitMEX. At the same time, nearly 490 positions were liquidated for almost $100 million USD on Bitfinex. This amounts to the largest liquidation in Bitcoin history. Earlier this year, the second-largest day had made history when Bitcoin crashed from its all-time high of $58,300 USD to nearly $9,000 USD less at a trading value of around $47,000 USD. During this crash, nearly $6 billion USD worth of futures contracts were liquidated.

While a crash in price doesn’t always look optimistic, it’s worthwhile looking at the strength gained since the previous correction. If Bitcoin can hold its price before seeing a recovery, we might see a new all-time high in the next few weeks.

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