Cryptocurrency exchanges closed $1.26 billion in margin trades on a sharp market slump. About it writes RBC. The reason was a sharp drop in bitcoin – it lost almost 11% of its value in one day.
At the moment, the price of the cryptocurrency fell to $25.4 000, but at the time of writing, the cost recovered to $28.4 000, which was the first drop below $27 000 since 2020. The increased volatility is likely due to unstable economic conditions and high inflation in the US and globally.
According to CoinGlass, a total of over 400,000 traders have been forced to close out margin trades from crypto exchanges. The biggest of them was a deal on the Bitmix platform paired with Bitcoin. Its amount was $10 million, Bitcoin brought the biggest losses – $427 million, second place was taken by Ethereum ($352 million), and third – Terra ($85 million).
Against the background of economic instability, the Nasdaq technology exchange index also fell. Over the past month, its level has fallen by 16.7% and by 30% from the year’s highs.