Bitcoin (BTC) suffered a sudden drop of 5% on April 12, resulting in losses of over $400 million for traders with leveraged positions in Bitcoin and other cryptocurrencies. In less than an hour of late New York session trading, BTC fell from $68,341 to a low of $65,110. Ethereum (ETH), the second largest cryptocurrency by market capitalization, also experienced a decline of 8%, dropping from an opening price of $3,553 to $3,226.
According to data from Coinglass, the flash crash in Bitcoin caused more than $417 million in leveraged positions to be wiped out within an hour. Of this amount, Bitcoin longs accounted for over $77.93 million and Ether longs accounted for more than $63.35 million. Binance saw the most short and long liquidations, totaling $171 million, while OKX traders suffered combined losses of $158 million.
Coinglass data further revealed that within the past 24 hours, total liquidations reached $860 million among 270,993 traders.
The crash coincided with a dip in U.S. stock markets during the U.S. trading session, following new data showing a third consecutive month of accelerated inflation. The unexpected increase in inflation dampened hopes for Federal Reserve rate cuts this year and raised concerns about the progress in controlling high price levels.
JPMorgan Chase CEO Jamie Dimon also expressed concerns about inflation, geopolitical tensions, and the Fed’s Quantitative tightening efforts. In the bank’s first-quarter earnings results announcement, Dimon stated that the market is likely to be burdened by “persistent inflationary pressures, which may likely continue.”
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investments and trading moves.