Cryptocurrency assets saw extreme volatility over the weekend as Bitcoin touched a low of approximately $31,000. The overall market cap of digital currencies dropped below $1.3 trillion for the first time since February 2021.
The latest drop in the cryptocurrency market accelerated liquidations during the last 24 hours. According to the latest data published by crypto firm, bybt.com, $1.53 billion worth of cryptocurrency positions got liquidated within a single day.
Approximately $1.1 billion worth of long cryptocurrency positions were liquidated as BTC, ETH, XRP and DOGE lost significant value. Bybt mentioned that 296,000 traders got liquidated during the latest market volatility.
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The cryptocurrency market posted a recovery of nearly $150 billion in the last few hours and that triggered liquidation of more than $400 million worth of short crypto positions. Bitcoin crossed $35,000 on Monday, which is a jump of nearly 15% from the recent low. Ethereum is currently trading near $2,100 after posting a spike of more than 20% in the last few hours.
Last week, Finance Magnates reported about the liquidation of more than 300,000 crypto traders amid extreme market volatility.
Impact of China and Tesla on Cryptocurrency Market
Recently, Reuters reported about China’s strict crypto measures. The country banned financial companies from services related to cryptocurrency payments. Additionally, Asia’s largest economy introduced restrictions regarding crypto mining in the region. Elon Musk, CEO of Tesla remained vocal about Bitcoin and other cryptocurrency assets during the last few days. In a Tweet, Musk called Bitcoin a highly centralized cryptocurrency and mentioned that BTC mining companies are controlling the market. “A single coal mine in Xinjiang flooded, almost killing miners, and BTC hash rate dropped 35%,” Musk said in a tweet.
The latest announcements by China and Musk have had a negative impact on the cryptocurrency market as the total market cap of digital currencies lost nearly 45% of its value in just two weeks. As of writing, the crypto market cap stands at around $1.45 trillion.