Categories: News

Breaking: Investors Lose As Crypto Market Dips By Over $200B

Many Investors Have Lost Everything As Crypto Market Dips By Over $200B.

 

 

As bitcoin prices plunged below $43,000, $3.5 billion in liquidation took place, dropping the market value from $2.3 trillion to $2.1 trillion at the time of writing.

A total of 369,103 traders liquidated their accounts for the day. The biggest liquidation order happened on Huobi-BTC.

What is liquidation?

  • Investors leveraged positions are liquidated if an exchange closes them for a partial or total loss of their initial margin when on cryptocurrency markets.
  • A trader who is incapable of meeting the margin requirements for a leveraged position (doesn’t have the funds to keep the position open) will be forced to liquidate the trade. Liquidation occurs both in margin and futures markets.
  • In the case of a large move against a leveraged position, you can lose the entire collateral (initial margin) you paid. Some countries, such as the United Kingdom, consider crypto trading such a risk that they have prohibited crypto exchanges from offering leveraged products to retail investors in order to protect them from losses.

Bitcoin’s 16% plunge in the wake of its official recognition as legal tender in El Salvador had fueled bullish sentiment as the United States was coming off of Labor Day holiday weekend.

thepublisherngr

Recent Posts

BREAKING: Edo PDP Rages As Okpebholo Sacks ‘Civil Servants’

The Edo State chapter of the Peoples Democratic Party (PDP) has expressed deep disappointment and anger over…

3 hours ago

Guard Of Honour Held For Late COAS Lagbaja As Body Arrives In Abuja

The body of the late Chief of Army Staff, Lieutenant General Taoreed Lagbaja, has arrived…

3 hours ago

BREAKING: FEC proposes N47.9 trillion budget for 2025 fiscal year

The federal government has unveiled a proposed budget of N47.9 trillion for the 2025 fiscal…

3 hours ago

How To Detect Fake Drugs In Nigeria

The WHO defines counterfeit drugs as those deliberately mislabeled to deceive consumers about their identity…

5 hours ago

NNPCL reaches 1.8 million barrels per day of crude oil production

The company also stated that it is set to hit the two million barrels per…

5 hours ago

Atiku has no chance in PDP, won’t get 2027 Presidential Ticket – Wike declares

Nyesom Wike, Minister of the Federal Capital Territory (FCT), recently cast doubt on former Vice…

12 hours ago