Most of the Bitcoin liquidations happened on Binance as tech giants like Google and Tesla slipped by over 10% on Wall Street.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
A major sell-off on Wall Street on Wednesday seems to have now spilled over to the broader crypto market. Bitcoin price is down over 3% in the past 24 hours slipping all the way to $64,000 levels. As per data from CoinGlass, more than $290 million in liquidations took place in the broader crypto market with over $262 million in long liquidations.
Crypto exchange Binance saw the highest liquidations at $118 million, with 88% in long trades. Also, popular crypto exchanges in Asia, OKX and Huobi, saw 94% long liquidations taking place.
On Wednesday, the megacap tech shares in the US went tumbling down with the US stock market recording its worst day since 2022. This happened as the excitement around the artificial intelligence theme seemed to wane.
Mixed quarterly earnings from Google parent Alphabet and Tesla led to their shares closing down as much as 12% on Wednesday. Collectively, the “Magnificent 7” tech stocks lost over $750 billion in market cap, marking the largest single-day loss on record for the group.
Benjamin Celermajer, co-chief investment officer at Magnet Capital told Bloomberg:
“It mainly seems that after a bad night for equities in the US, crypto like most asset classes is feeling a little bit of a flow-on effect in sentiment.”
Along with Bitcoin, other altcoins have faced an even steeper correction. The Ethereum price is down by 8% slipping all the way to $4,150 levels earlier today a day after the launch of the spot Ethereum. It is clear that the ETF launch has been a sell-the-news pressure on the Ether price.
In Thursday’s trading session, the Japanese Yen staged a strong revival against the US dollar triggering major liquidations across all risk-ON asset classes including equities, gold, and Bitcoin.
The value of the Japanese yen surged to its highest levels in more than two months, against the USD. A stronger Yen will indeed hurt the local exporters thereby sending the Nikkei 225 index into a strong technical correction.
The Yen’s growing strength has led to an added source of volatility across global assets amid the fading interest in the artificial intelligence theme. After hitting a multi-decade low earlier this month, the Yen has gained 6% against the USD from the bottom levels.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
