Traders lost $360 million overnight due to surges in cryptocurrency rates
Traders lost $360 million in 24 hours because of sharp jumps in cryptocurrency rates.
Most of the losses occurred during the collapse of Bitcoin from $29.7 thousand to $27.6 thousand and the subsequent recovery to $29 thousand on the night of April 26 to 27.
Traders lost about $361 million in 24 hours on cryptocurrency exchanges due to the jump in cryptocurrency rates. According to Coinglass, most of the losses - $195 million - occurred in the last 12 hours amid the collapse of Bitcoin and its subsequent recovery.
However, at 22:00, the value of the asset began to decline sharply and by 23:00 it had fallen to $27.6 thousand. By the morning of April 27, the price of the asset has recovered to $29 thousand. According to CoinGecko, at 10:50 BTC is trading at $28.8 thousand.
Within 24 hours, 80,000 traders' positions were liquidated on crypto exchanges. According to Coinglass, 58% of them were long and 32% were short. Orders with Bitcoin accounted for $178 million, with Ethereum - $72 million. The largest forced position closing occurred on the Bitmex exchange in the pair XBT/USD - for $5 million.
The cryptocurrency community linked the bitcoin plunge to rumors of bitcoin sales by the U.S. government and the bankrupt Mt.Gox cryptocurrency exchange. However, Arkham Intelligence, the analytics platform that initially sent out such warnings, later said that the data had been misinterpreted.
Arkham also said that their messages couldn't have caused a panic in the market because they were sent to a small number of users after Bitcoin had already started to fall in value.