BTC Drops Below $29K; Binance Triggers Liquidation
By Laxmikant Khanvilkar
Virtual digital asset (VDA) were knocked down by huge sell order on Binance triggered massive long liquidation pressure which was further compounded by hot U.K. inflation data.
Bitcoin, the largest cryptocurrency by market capitalisation, slumped below $29,000 mark and was last quoted at $28,800.
The sharp drop in BTC has caught traders who were betting on an increase off guard. Majority of BTC liquidated positions were long. Ether (ETH) followed a similar pattern, dropping below $2,000. The second-largest cryptocurrency by market value was recently changing hands around $1,981, down over 4%.
The global crypto market capitalisation dropped 5.43% to $1.21 in the last 24-hours. Total crypto market volume increased 31.54% to $61.76B, of which DeFi is accounted for $5.04B, or 8.15% of the total crypto market volume. The volume of all stablecoins is now $55.65B, which is 90.10%. Bitcoin’s dominance is currently 46.16%, an increase of 0.27% over the day.
Most of the VDAs were in the negative zone, including a number of decentralized finance tokens. DeFi exchange Uniswap’s UNI and lending platform Aave’s AAVE sank 6% and 7%, respectively. Maker’s MKR tanked by 5%.
Decentralized exchanges (DEX) volumes have been surging amid growing concerns about their centralized counterparts.
Meanwhile, increasing regulatory scrutiny continued with the Securities and Exchange Commission (SEC) reopening a proposal from last year that would target DeFi exchanges for regulation.
Elsewhere, Russia’s central bank is planning to start crypto mining for cross border deals in order to dodge the international sanctions imposed on the country to exclude it from the U.S. dollar-powered global payment infrastructure.
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