The crypto community was left in disbelief as major exchanges saw $866 million in positions liquidated.
Scale of Crypto Liquidation
Within 24 hours, the cryptocurrency community was left in disbelief. Nearly $866.37 million in crypto positions were liquidated across major exchanges, hitting 299,277 traders. This includes $752.22 million in long positions and $114.15 million in short positions.
Impact on Major Cryptocurrencies
Bitcoin, the leading cryptocurrency by market capitalization, dragged the crypto market downwards after crashing from a new all-time high above $108,000 set earlier this month. At the time of writing, BTC is valued at $101,018, down by 2.63% in the last 24 hours. Ethereum closed 3.96% down at $3,668.25, while Binance Coin was 0.83% down, XRP 2.58% down, and Cardano 5.62% down.
Jerome Powell's Remarks and Crypto Community Reaction
One of the main triggers for the liquidation is channeled to Jerome Powell's FOMC speech in which he stated that the 'FED cannot own Bitcoin.' This statement indicated that he was not willing to include Bitcoin in the U.S. Treasury, which received stark criticism from the crypto community. Powell stated that the Federal Reserve would not get entwined in the affairs of cryptocurrency but would limit their focus on traditional financial systems.
The major losses on the crypto market are largely tied to political statements and stock market declines, leading to significant liquidations and noticeable price drops in leading cryptocurrencies.
