The crypto markets were hit by a new round selling Tuesday afternoon at 15:21 UTC. Bitcoin (BTC), Ethereum (ETH) and many other altcoins all fell by double-digit percentages within two hours.
According to CoinGecko’s price data, bitcoin traded at USD 46.2k at press time. Bitcoin was down 8.7% in the last 24 hours. This is still a significant increase from the USD 42,900 low that was recorded onBinanceEarlier in the selloff, the USD 42.850 seen onCoinbase.
According to data from Bybt.com, the sharp falls lower led to large liquidations of derivatives exchanges. More than USD 2.7b was liquidated in one hour across all trading pairs and exchanges.
Data fromSkewMassive liquidations of excessively leveraged positions may also be observed in the bitcoin market. Bitcoin alone saw more than USD 750m being liquidated in an hour.
Leveraged trading is when you borrow funds to take out a larger position than what you could with your current funds. This allows you to potentially make a greater profit and can be used to increase your profits. Margin trading can increase traders’ returns but it can also cause increased losses and liquidations. This is why experts advise novice traders to avoid leveraged trading.