Recent slumps in two of the most important crypto assets have been caused by liquidations totalling $110 million in Ethereum (ETH), and Bitcoin (BTC). Futures contracts on several exchanges have led to liquidations of approximately $110 million in Bitcoin (BTC). BTC currently trades at around $40K, while ETH is trading below $3K. According to reports, the liquidations took 30 minutes and are a further drop in crypto’s price early in 2018. Wu Blockchain released a statement on Twitter.
“BTC has fallen by 2.3% in the last 15 minutes. Coinglass reports that liquidation has reached $110million in the last half hour. This includes $57.25 million in BTC, and $38.03 millions in ETH. BTC was once below $40,000 and ETH was once below $3,000
Both digital currencies leading in the market are struggling to recover after their recent slump. This comes amid an announcement by the US Federal Reserve that they plan to increase interest rates four-fold. This change in value represents an update on the previously reported three-fold increase in interest rates. Reports also suggest that the interest rates could rise as early as March of this year.
BTC, ETH and other digital currencies have seen price drops since the beginning of the new year. Darshan Bathija (CEO & Co-founder of Vauld) offers an explanation:
The uncertainty in markets and the Omicron variant’s spread can explain the current drop in BTC prices. Two very different things can be expected simultaneously. Many investors will see this as an opportunity for them to buy the dip while others will try to reduce their losses. This will lead to a sellers’ frenzy.
Leave a Reply