Crypto News- Crypto traders took a hefty blow, witnessing a staggering $800 million evaporate in liquidation losses. The catalyst? A seismic surge in the value of major cryptocurrencies, with Bitcoin and Ethereum scaling heights not seen in years.
Bitcoin rocketed to nearly $64,000, hitting its pinnacle since November 2021, while Ethereum surged towards $3,500, marking a triumphant return to levels unseen in a two-year span. But this euphoria swiftly turned to despair for leveraged traders, ensnared in a tempest of price gyrations, resulting in the colossal $800 million liquidation bloodbath.
Volatility Ravages Crypto Markets: 800M Dollars Liquidated, Traders Burned
This cataclysmic event marked the most significant liquidation debacle since August 18, 2023, when over $1 billion was obliterated, coinciding with Elon Musk’s bombshell sale of $373 million in Bitcoin from SpaceX’s coffers. Unlike typical liquidation episodes that predominantly afflict either long or short positions, this spectacle saw an unprecedented balance between the two.
Crypto trader Magus observed the chaos with wry humor, musing, “Everyone has a plan until they take a liquidation to the mouth.”
Pointing Fingers: The Coinbase Conundrum
Experts attribute this anomaly to the tumultuous price swings triggered by external forces, including service disruptions at leading cryptocurrency exchange Coinbase.
Enter the Coinbase debacle. The premier platform for crypto trading suffered crippling downtime, leaving countless users stranded without access to their accounts or the ability to execute trades during critical market movements. Social media platforms buzzed with tales of users witnessing zero balances and encountering transaction glitches, exacerbating the panic and amplifying market volatility.
In response, the Coinbase team scrambled to assuage fears, pledging to investigate and provide updates promptly while reassuring users about the security of their assets.
Amid this chaos, Bitcoin embarked on a rollercoaster ride, starting at $57,074, surging by a staggering 12.66% to reach an intraday zenith of $64,300 before succumbing to a correction.
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