Over $400 Million Liquidated in a Day as Bitcoin Tumbled Below $41K

The market suddenly turned red today following what seems to be another wave of regulatory efforts to crack down on cryptocurrencies in China. This left over $400 million liquidated in less than a day.

• As CryptoPotato reported, China continues with its efforts to further crack down on the entire cryptocurrency market.
• The country’s national bank issued a statement outlining that digital assets are banned, adding that operating with exchanges will also be prohibited.
• While a lot of this isn’t new, the market responded negatively, and Bitcoin’s price tumbled by more than $3K in a matter of minutes.
• It didn’t stop there, as moments later, the price went below $41,000 before recovering to where it currently trades around $41,400.
• This left a massive number of liquidated positions, most of which, of course, are longs.
• Data from Bybt shows that there is more than $418 million worth of both longs and shorts were wiped off the market, where almost 70% of these were longs.
• The largest single liquidation order took place on OKEx – it was a BTC order with a face value of almost $7 million.
• Most of the liquidations took place on Binance, which accounts for about 33% of the total.