Bitcoin loses trillion dollar status as $1.97 billion longs get liquidated

Bitcoin loses trillion dollar status as $1.97 billion longs get liquidated.

Flagship cryptocurrency asset, Bitcoin lost its trillion-dollar status for the second time this year as panic selling pushed the asset class to lose 18.78%, representing one of its biggest one day drops since the 50% crash of May 2021. Its market capitalization currently stands at approximately $900 million.

Bitcoin started the day trading at $53,598, however, due to the sell-off, it lost over $10,000, to trade as low as $43,530, according to data from Coinmarketcap.

Due to the sell-off witnessed in the market, data from Coinglass also reveals that over $1.97 billion worth of leveraged longs got liquidated in the process.

What you should know

Binance leads the pack of long liquidation with $611 million. OKEx comes in second with $581 million Bitmex takes third with $120 million.
The price of Bitcoin has fallen to two-month lows. A reason for the decline could be as a result of the spread of the Omicron variant which has reportedly been detected in the United States, United Kingdom and other developed economies.

As a result, Bitcoin’s bear market cancels out the 2-month long bull market since Sept. 29, where BTC soared over 63% to attain an all-time high of $68,789.63 which was attained on the 8th of November 2021.
Another reason for the decline can also be attributed to mainstream resistance from the US regulators that have invited the CEOs of prominent crypto exchanges including FTX and Binance US for a hearing on crypto-assets.
Despite concerns surrounding volatility and non-compliance with traditional financial practices, Bitcoin continues to rise as a viable asset for jurisdictions with unstable economies. BTC now trades $48,000 as of the time of this writing.