0

    Bitcoin 5% flash crash leads to $165M in leveraged crypto liquidations

    2024.04.02 | exchangesranking | 28onlookers
    25cc9d4a>

    A sudden 5% drawdown in the price of Bitcoin (BTC) on Tuesday has seen traders with leveraged exposure to Bitcoin and other cryptocurrencies rack up over $165 million in losses in less than two hours.

    Bitcoin plunged 5% from $69,450 to as low as $65,970 in less than 30 minutes in early hours on March 2 UTC, per TradingView data.

    Bitcoin tumbled over 5% in a sudden tumble on April 2. Source: TradingView

    According to data from Coinglass, Bitcoin’s sharp wick down saw more than $165 million in leveraged positions wiped out, with just over $50 million in Bitcoin longs and more than $40 million in Ether (ETH) longs accounting for the bulk of that figure.

    Roughly $6 million in long positions on Dogecoin (DOGE) and $4 million in Solana’s SOL (SOL) were liquidated, trailing BTC and ETH.

    Bitcoin’s sudden drawdown caused a $165million leverage flush. Source: CoinGlass

    Around the same time as the drawdown, Bitcoin exchange-traded funds (ETFs) posted a net outflow of $86 million, breaking a four-day positive inflow streak, per FarSide data.

    BlackRock’s ETF stood as the best-performing fund, whose net inflows reached $165.9 million, while Fidelity came in second with $44 million.

    Related: Memecoin madness is breaking the Bitcoin halving cycle

    However, the inflows were weighed down by Grayscale’s GBTC posting $302 million in outflows, bringing the net daily outflows for all the funds to $85.7 million.

    Tether wobbles from its peg

    At the same time as the Bitcoin flash crash, the value of the United States dollar-pegged stablecoin Tether (USDT) also wobbled around 1%, briefly falling from its $1 peg to $0.988, according to data from CoinGecko.

    Tether experienced a brief wobble on some price tracking sites. Source: CoinGecko

    It’s unclear if the USDT wobble was an error in the API of certain data trackers or if the value of the currency suffered a sudden loss; however, the brief depeg did not appear on other price trackers.

    Cointelegraph contacted Tether but did not receive an immediate response.

    Magazine: ‘SEAL 911’ team of white hats formed to fight crypto hacks in real time

    The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other ssues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.