Liquidations of up to $110 million in Bitcoin (BTC) and Ethereum (ETH) futures contracts across several exchanges have caused a recent slump in the two largest crypto assets. BTC is currently trading at around the $40K price level, while ETH is changing hands below $3K. The liquidations reportedly took place over thirty minutes, and represent a further price fall early this year for crypto. A statement released on Twitter by Wu Blockchain read:
“BTC has fallen by 2.35% in the past 15m. According to Coinglass, the liquidation in the past half an hour has reached $110 million, of which $57.25 million in BTC and $38.03 million in ETH. BTC once fell below $40,000, and ETH once fell below $3,000.”
Both leading digital currencies are currently struggling to recover from their recent slump. Furthermore, this comes amid an announcement that the US Federal Reserve is looking to hike interest rates four times over. The change in value is an update to the earlier reported interest rate increase of three times. In addition, reports also further suggest that the interest rate hike may take place as soon as March this year.
Since the turn of the new year, BTC, ETH, and several other digital currencies have suffered price hits. Darshan Bathija, CEO & Co-founder at Vauld offers an explanation for this, saying:
“The current price drop of BTC can be attributed to the uncertainty all markets are facing, with the spread of the Omicron variant. We can expect two very contrasting things simultaneously – many investors will view this as an opportunity to buy the dip, while many will also try to cut their losses, leading to a sellers’ frenzy.”
Image Credits: Pixabay
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
