Crypto Crisis: 57,000 Traders Lose Money as Bitcoin Drops to $26,000
- Bitcoin, the poster child of the crypto world, has witnessed another decline in value
- The recent bearish movement has caused no less than 57,000 investors to lose millions
- With the decline in value of the cryptocurrency market, Nigerian dealers are yet to give up on the digital currency
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Bitcoin has fallen to $26,000 today, Friday, May 12, 2023, causing thousands of traders to incur significant losses, Leverage Trading reports.
The volume of trade of Bitcoin stood at approximately $18.2 billion, a 12.6% decline in the last 24 hours. The cryptocurrency market capitalisation locked around $1.09 trillion, representing a 3.75% fall in the last 24 hours.
Source: UGC
Most traders who faced liquidations during the past 24 hours had opened positions on derivatives swap contracts, also known as perpetual contracts, Coinglass reports.
Over 57,000 traders were liquidated, and the total liquidation amount stands at $143.28 million, with the most significant single liquidation order being a BTC-USDT-SWAP contract on OKX valued at $2.61 million.
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However, this lack of a physical delivery date can lure traders into holding their short-term positions overnight, quickly turning into high-risk swing trade positions vulnerable to sudden price movements.
The biggest risk factor comes for those traders that don't apply proper risk management techniques such as stop losses or isolated margin accounts. Isolated margin accounts limit the use of margin capital to a single position, which can prevent a sudden price movement from wiping out the entire account.
In contrast, crossed-margin accounts give one single position access to all the account's margins, putting the entire account at risk of liquidation in the event of a sudden price move.
With the decline in value of the cryptocurrency market, Nigerian dealers are yet to give up on the digital currency, as they continue to tip Bitcoin to recover in 2023, according to a Legit.ng report.
Bitcoin's tumultuous journey amid market liquidity and regulatory backlashes
Recently, Bitcoin, the poster child of the crypto world, has witnessed a tumultuous journey as it hit a two-month low amidst weak market liquidity and regulatory attacks. The fate of the digital currency has become a subject of intense debate, with investors and analysts closely monitoring its every move.
As market liquidity took a nosedive, Bitcoin's value plummeted, making investors panic. The bearish sentiment was further fueled by regulatory attacks from various jurisdictions, including China, which recently banned financial institutions from offering crypto-related services. The move triggered a mass sell-off, with Bitcoin losing a whopping 30% of its value within a few days.
The regulatory landscape's uncertainty has further deepened the crisis, with investors grappling with whether to stay invested or cut their losses. The crackdown on crypto mining in China has forced many miners to look for alternative locations, disrupting the market further.
As the crypto world continues to evolve, the future of Bitcoin remains uncertain. While some believe that the digital currency has the potential to bounce back, others are more pessimistic, citing its volatile nature and the increasing regulatory pressure. Only time will tell which side of the debate is correct, but one thing is sure- the crypto world is never short of surprises.
Crypto Experts Reveal Worst Month to Invest
Cryptocurrency experts have compiled a report on crypto-related crime from 2012-2021, covering lost funds, crime types, target countries, and future trends, Legit.ng reports.
According to the report, cryptocurrency crime hit an all-time high in 2022, with $12 billion stolen in 436 incidents. The amount represents an equivalent of $1.4 million lost hourly last year due to crypto crime.
All crypto stolen in the last decade was about $30 billion, 30 times the UN’s earthquake appeal for Turkey, 20 times the cost of building the world’s tallest building, and 18 times Google’s YouTube acquisition.
The report stated that June is the most dangerous for cryptocurrency investments as the last 10 years have seen $5.7 billion lost to 77 crypto crime incidents. It also noted that the figure could reach an all-time high in 2023.
Source: Legit.ng
