The crypto market has faced another volatile trading day, and the total liquidations have jumped to roughly $1 billion.
The total liquidations in the cryptocurrency market have reached $1 billion as all assets have dumped in a matter of hours. Following new FUD from China, bitcoin slumped to a two-week low at just over $32,000, ETH below $2,000, and so on.
After the somewhat positive weekend when BTC recovered some losses and traded at $36,000, the situation reversed quite rapidly.
China’s third-largest state-run bank, the Agricultural Bank of China, said it had banned its customers from interacting with cryptocurrencies.
As has happened on previous occasions when the world’s most populated nation displayed its negative stance on crypto, the market started to tumble.
As a result, bitcoin dumped to a two-week low of just over $32,000. Most alternative coins followed with even more violent retracements.
Ethereum plummeted by nearly $300 in a matter of hours to below $2,000. As such, the second-largest crypto dropped below that coveted level for the first time in almost a month.
With most of the altcoins performing in a similar manner, the cumulative market cap of all digital assets lost over $120 billion in hours.
Somewhat expectedly, the enhanced volatility in a relatively short period has caused massive pain for leveraged traders.
According to Bybt, the total liquidations have skyrocketed to roughly $1 billion in the past 24 hours. Although BTC trades are responsible for more than 50% of the entire number, the largest single liquidation came from EOS.
The unfortunate trader has lost more than $6 million on Huobi as the price of EOS slipped by 15% in a day.