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$353 Million Worth of Crypto Liquidated in Hours as Bitcoin Plunges to $38,000

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Fri, 01/21/2022 - 06:03
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Alex Dovbnya
Bitcoin has collapsed to the lowest level in six months
$353 Million Worth of Crypto Liquidated in Hours as Bitcoin Plunges to $38,000
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The price of Bitcoin plunged to an intraday low of $38,250 on the Bitstamp exchange on Friday, reaching its lowest level since early August.

BTC
Image by tradingview.com

The flagship coin is now changing hands at $38,800, struggling to stage a quick comeback.  

On Thursday, the top cryptocurrency managed to recover to $43,500. The uptick ended up being a bear trap, with Bitcoin losing 12% of its value.

According to data provided by analytics firm Coinglass, $372.65 million worth of crypto has been liquidated over the last four hours. Long positions account for more than 90% of the wipeout.

Most altcoins took an even harder beating than Bitcoin, with Avalanche (AVAX) and Binance Coin (BNB) posting double-digit losses.    

Over the last 24 hours, a total of 183,239 traders got liquidated, with one BitMEX user losing $9.91 million worth of Bitcoin in a single trade.

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Some ardent Bitcoin critics are having a field day amid the ongoing cryptocurrency crash. “Black Swan” author Nassim Taleb likened Bitcoin traders to ruined gamblers in a recent tweet.  

As reported by U.Today, cryptocurrency mogul Mike Novogratz predicted that the largest cryptocurrency would bottom out at $38,000, which is believed to be a major support level. Most recently, he tweeted that cryptocurrencies and tech stocks would remain under pressure due to rising bond yields.

The Federal Reserve’s rapid shift toward monetary tightening has created a risk-off environment for cryptocurrencies and stocks.

The central bank is widely expected to hike interest rates multiple times this year. According to a Reuters poll, three rate hikes are expected to occur this year. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.