Crypto Market Experiences Significant Liquidations Amid SEC Ban Staking

The cryptocurrency market has seen a lot of twists and turns over the previous 24 hours as more than 63K traders liquidated almost $144 million in the market. Bybit received the single-largest liquidation request of $2.7 million. The market capitalization is at $1.05 trillion as a result of these traders’ actions. 

Short traders have once again drawn the short stick and are suffering heavily in the market as a result of bitcoin’s recent climb above $24,000. The number of liquidations over the previous 24 hours had swiftly surpassed $144 million as of Thursday morning.

Coinglass reported and wrote, “In the past 24 hours, 62,154 traders were liquidated, the total liquidations come in at $143.51 million. The largest single liquidation order happened on Bybit – BTCUSD value $2.72M.”

The news about the liquidations came hours after Brian Armstrong, the CEO of Coinbase,  tweeted about the U.S. Securities and Exchange Commission’s desire to outlaw bitcoin staking for domestic retail consumers.

He wrote, “We’re hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that’s not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.”

Additionally, he claimed that crypto staking improves security and scalability while lowering the network’s carbon footprint. Staking is the process of keeping bitcoin assets locked up for a defined period of time to keep a blockchain functional. By staking their existing cryptocurrency, the user is rewarded. Typically, a proof-of-stake consensus algorithm is used to manage this process, like on the Ethereum blockchain.

Brian explained various things in a series of tweets and concluded by saying, “Hopefully we can work together to publish clear rules for the industry, and come up with sensible solutions that protect consumers while preserving innovation and national security interests in the U.S.”