The last week of February did not start very well for cryptocurrency traders. The bitcoin rate falls below $ 46,000 on February 23, while ETH has dropped to $ 1,400.
After a week of records, it’s time for a major correction. There are no fundamental reasons for the market fall by almost 25%, and it is most likely that it is of a technical nature. It is not yet known whether the correction will end in the coming days or a new period of the bear market begins.
Against this background, the volume of liquidations of positions in the derivatives market amounted to $ 3.5 billion – a record figure this year. Most liquidations occurred on the Binance and Bybit exchanges. Among the assets, BTC, ETH and XRP were the leaders. It is also interesting that on the Kraken exchange, the Ethereum price dropped immediately to $ 700 – due to fast sales, there were no buy orders left in the order book.
After a significant decline, a short recovery phase followed – bitcoin rose to $ 54,000, while the ether rate returned above $ 1,700. However, on the morning of February 23, the bears went on the attack again. At the time of publication, BTC is trading at about $ 46,000, and Ether is trying to push off $ 1,400.
“There has been a massive accumulation of longs in the market in recent weeks, so traders should have waited for such corrections, and this is normal,” said Paolo Ardoino, CTO of Bitfinex.
Fluctuations in the cryptocurrency market have led to the liquidation of some positions in the decentralized finance (DeFi) industry. In total, positions were liquidated in the amount of $ 24.1 million, and this is the second largest indicator in the history of the industry. Most positions were closed in the Compound protocol ($ 13.7 million).
Recall that on February 19, the capitalization of bitcoin for the first time exceeded $ 1 trillion, and the current historical maximum of BTC of about $ 58,300 was set on February 21. On February 20, the ether rate for the first time in history reached $ 2,000. Now the capitalization of bitcoin has dropped to $ 856 billion, and the entire market – to $ 1.386 trillion.
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