Over $9 billion liquidated on the crypto market

The bitcoin price dropped below $60 000 and went into a sharp decline. In the process, the price fell to $50 931.30.

These moves resulted in the liquidation of $9.12 billion in traders’ positions over the past 12 hours.  
Bitcoin accounts for about half of the total.  

In the ether market, the daily range has been from $2 340 to $1 950, the volume of liquidations exceeded $1 billion. After the decline, cryptocurrency rates quickly recovered: bitcoin to $56 000, and ether to $2 200.

During the day, the volume of liquidations reached $9.81 billion, which became the largest value in the history of the crypto market.The number of liquidated traders is more than a million.  

The scale of today’s movement was largely influenced by the cascading liquidation of long positions, which is also evidenced by the sharp change in funding rates for futures to negative values.  The projected funding rates fell to -0.26%, which is comparable to the levels of March 2020, when bitcoin lost about half its value in a day.

The sharp and deep decline in the market again caused unexpected consequences in the space of decentralised finance, whose services at such times suffer from slow response and low liquidity.

At the same time, Bitcoin has closed all gaps on the Chicago Mercantile Exchange (CME) futures chart since March. Gaps occur when the price of a cryptocurrency changes while traditional markets are closed.  As history shows, the price of bitcoin tends to return to breakpoints. 

A new gap was also formed at $61 980.

Meanwhile, rumors circulate online that the US Treasury Department is preparing to indict several financial institutions for money laundering through cryptocurrencies. As the source of information lawyers who are familiar with the plans of the working group of the US Treasury Secretary Janet Yellen are being called.

Jake Chervinsky, a lawyer specialising in cryptocurrencies, considers this information to be unreliable:

“The Treasury Department is not charging money laundering charges.  This is the responsibility of the Ministry of Justice.  Moreover, a case against several financial institutions would be unusual.  Also, criminal investigations are kept in strict confidence and are rarely leaked.”