Many investors got liquidated as the crypto market tumbles.
The crypto market has experienced a pullback over the last few months. The prices of numerous cryptos have dropped by over 60%, with some even losing over 80% of their ATH value. However, the sudden crash that started over the weekend was unexpected.
While a lot of analysts and traders expected the market to continue on a downward trend, the current crash sent cryptos losing value by huge percentages within a very short time.
Recent reports indicate that over $1.3 billion of investor funds have been wiped out over the last 24 hours. This has affected over 273,000 investors whose positions have been liquidated.
More than 273,000 fellow #crypto enthusiasts liquidated in the last 24hrs. Roughly $1.3 billion have been wiped out! #PrayForCrypto pic.twitter.com/BeIxlt5vam
— Ali Martinez (@ali_charts) June 14, 2022
Even the government of El Salvador, which legalized Bitcoin as legal tender a few months ago, has seen the value of its BTC stash shrink by over $40 million. On the other hand, Microstrategy is down $1B while Tesla is down $320M on their Bitcoin holdings.
Unforgiving Market
Granted, it’s not the first time that the crypto market has experienced a price crash. It’s a volatile trading environment. For example, Bitcoin’s price was over $40k just a few months ago. Today, the coin is trading at just around $22.4, with analysts predicting further drawbacks. Whether this is a temporary bearish moment or whether it’s going to persist is still a subject of discussion among crypto enthusiasts.
Is This The Crypto Winter?
For months, analysts and traders have predicted an incoming crypto winter. A crypto winter happens when crypto prices crash to unprecedented levels and stay down for an extended period. It could weeks or months before the winter ends. Crypto winter is often accompanied by extreme fear among investors as many of them see their investments enter the red zone.
On the other hand, crypto winters present a great opportunity for investors who are not affected by the FUD to accumulate and wait for the bull run to gain profits. As is always the case, crypto winters are followed by a period of accumulation that culminates into a bull run and price jumps. It’s yet to be seen whether this trend will play out this time around.
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Source: https://thecryptobasic.com/2022/06/14/crypto-market-loses-1-3-billion-in-24-hours-as-over-270000-investors-undergo-liquidation/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-market-loses-1-3-billion-in-24-hours-as-over-270000-investors-undergo-liquidation