Crypto market loses $400 billion as Bitcoin dips below $30K

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A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su
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Crisis seems to be rocking the cryptocurrency market as flagship casset, Bitcoin dipped by over 11% in the last 24 hours to trade in the $30,000 support zone, a price point Bitcoin has not traded since July 2021.

 

As a result of the market downturn, data from Coin Glass reveals that 207,965 traders have been liquidated to the tune of $846.54 million in the last 24 hours as the market continues its selloff, caused by policy decisions in the biggest economy in the world, the United States.

 

Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin.

 

It happens when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open). Liquidation occurs in both margin and futures trading.

 

Longs accounted for $699.44 million or 82.46% of the total liquidations seen in the market, as of the time of this writing. The shorts accounted for the rest.

 

The entire cryptocurrency market capitalization also fell. The market cap fell below the $1.5 trillion support to currently stand at $1.41 trillion as of the time of this writing.

 

The market is down over 10% in the last 24 hours.

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