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Home Tech Crypto $1 Billion Liquidated as Bitcoin Price Crashes by $1.4K in Minutes

$1 Billion Liquidated as Bitcoin Price Crashes by $1.4K in Minutes

Document Analysis NLP IA

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positive
sentiment

Sentiment0.11603174603175
objective
redaction

Subjectivity0.41142857142857
it's an affirmation
Affirmation0.546875

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Summary (IA Generated)

The price of Bitcoin (BTC) and Ethereum’s Ether (hereum-price-index” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cointelegraph.com/ethereum-price-index” rel=”noopener noreferrer”>ETH) plunged by 13% and 21%, respectively, within minutes on Aug.

2.

The move liquidated more than $1 billion worth of futures contracts as BTC/USD dropped from around $12,000 to as low as $10,550.

Source: Tradingview.

First, the volume in the cryptocurrency market tends to drop during weekends.

The cryptocurrency market tends to see large liquidations during the weekend.

Mass liquidations become more likely during the weekend because one large liquidation could trigger a cascade of liquidations.

As hundreds of millions of dollars worth of long contracts began to get liquidated, Bitcoin and Ether dropped rapidly.

Similarly, right before the halving on May 11, the price of Bitcoin dropped to $8,100 resulting in mass liquidations.