Meltdown of the crypto market: $ 2.2 billion because Bitcoin takes a 9% at $ 91,200

The cryptography market has just taken a dive, the bitcoin crashed from more than 9% to 91,200 – causing carnage for leverage traders. An amazing 2.2 billion dollars was destroyed in liquidations. This is what happened.

Tuesday, February 3, recorded the worst liquidations of a day in the history of the cryptography market, traders losing $ 2.25 billion in less than 24 hours. It is worse than the Luna crash and broke the liquidation record of $ 1.6 billion established by the FTX exchange saga in November 2022.

Quince: Crypto Market Liquidation Heatmap

The accident, which also saw the crypto industry lose more than $ 300 billion – or 10% of its current market capitalization – was triggered by President Trump Announcement of major prices Against the three largest trade partners in the United States – Canada, Mexico and Canada.

Image of Trump’s Social Post Post announcing prices

The move has frightened cryptographic investors who fear higher prices will increase inflation and interest rates. The increase in inflation would, in turn, would have that institutional investors turn to less risky investments such as treasury bills and obligations, sucking liquidity on the cryptography market.

Bitcoin traders lose $ 412 million in the prices crash

Bitcoin exchanges represented 18% of 2.25 billion dollars destroyed in today’s market crash.

Long leverages, which have been Too optimistic about a Trump presidencycarried the weight of the contract market while losing $ 341 million. In comparison, shorts represented only about $ 70 million in liquidations.

It should be noted that more than 85% of all Bitcoin liquidations affected traders on five crypto exchanges.

Merchants in Binance lost up to $ 121 million in cryptos in the crashWhile others on OKX, Gate.io, HTX and Bebit lost $ 72.9 million, $ 57.8 million, $ 54 million and $ 48 million, respectively.

Bitcoin already alluding to a possible recovery

The accident has seen the price of the BTC undergo a sudden and violent drop in prices, sliding below $ 100,000 and lowering up to $ 91,200, according to data from CoinMarketCap.

Coinmarketcap: Action of BTC prices after Trump’s prices

At the time of writing Bitcoin began to show signs of recovery And is currently negotiated about $ 95,700. In addition, the feeling of the market towards the inherited digital currency remains considerably optimistic.