Bitcoin and Ethereum Dip Fast and Furious, Causing over $1B in Liquidations

Sunday 10 August 2020, 10:19 PM AEST - 2 days ago

In brief:

  • After breaking $12k and $400, Bitcoin and Ethereum fell hard to $10,500 and $325.
  • Crypto traders were caught off guard with over $1 Billion in liquidations.
  • The volatility might just prove that we are in a crypto-wide bull market.

The month of August opened on a high note in the crypto markets. Earlier today and according to Coinmarketcap, the total crypto market capitalization experienced a one-year peak value of $363 Billion before dropping hard to $336.3 Billion in a matter of minutes. During the same time period of the record-breaking crypto market-cap, Bitcoin (BTC) and Ethereum (ETH) tested levels last seen years ago with each momentarily trading at $12,138 and $415 respectively.

However, the move up above Bitcoins and Ethereums resistance levels of $12k and $$400 was short-lived as both dropped to $10,500 and $325 in a matter of minutes. The Fast and Furious dip caught many crypto-traders off-guard.

As a result, the move down caused over $1.33 Billion in liquidations in the last 24 hours. A total of 70,245 crypto traders were affected by the sudden drop in the value of digital assets with the largest liquidation being worth $10 Million.

Below is a screenshot providing a comprehensive overview of the total liquidations that occurred.

BTC and ETH Drop Fast & Furious, Catching Crypto Traders Off Guard 16BTC and ETH Drop Fast & Furious, Catching Crypto Traders Off Guard 17Crypto Exchanges Respond to the Sudden Dip

The fast and furious dip in the crypto markets also caught the attention of teams at multiple crypto exchanges who provided took to Twitter to express their views of the situation. In the case of Deribit, the exchange admitted that the move was too sudden for strategic option trades. The team at the exchan ...

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