BTC Slumps Near $27.7k; Middle East Crisis Deepen
By Laxmikant Khanvilkar
Leading virtual digital assets (VDAs) extended their decline for the second consecutive day as the crisis in the Middle East deepened, which resulted in traders queue up for liquidating their positions.
According to the media reports traders suffered over $100 million of losses from liquidations on Monday. This was the largest amount of long liquidations in a day since Sept. 11.
Price of Bitcoin (BTC), the world’s most valuable cryptocurrency, slumped below $27,600 mark at one point in time. It has recovered and is currently resting at around $27,604.09, down 0.89%.
Ethereum (ETH), the second largest crypto in market value, was quoting 2.97%% lower at $1,579.62.
Similar trend was witnessed in broader markets. Key protocols such as solana (SOL), Polygon’s native token (MATIC) and Polkadot’s (DOT) endured 6% to 7% declines. They rebounded some later.
Analysts expect investor sentiment towards risky assets to remain shaky and the global financial markets to witness a renewed volatility due to the geopolitical situation in the middle-east.
The global crypto market cap declined 1.52% to $1.07 tn, over the last 24-hours. On the other hand, the total crypto market volume rose 58.63% to $28.73 bn. The total volume in DeFi is currently $2.61 bn and all stablecoins $26.17 bn, representing 9.09% and 91.10% respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance increased 0.34% to 50.27%.
IC15 index, the barometer of top fifteen tokens, lost 1.66% to 34,975.13.
Meanwhile, liquidation happens because traders doesn’t have enough funds to fulfil margin calls and keep the position open. Ether derivatives suffered a long liquidation worth $32.78 million. Some $18.25 million worth of BTC long positions were liquidated, followed by bitcoin cash (BCH) and Bancor’s (BNT) token, with more than $3 million liquidated for both.
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