- Over $400 million in the crypto market was liquidated in the past 24 hours.
- Over $121 million bitcoin and $63 million ethereum was liquidated.
- The positions could have been lost because of the impact of the EU proposal on unhosted wallets, which was recently passed.
The crypto market has seen a quick and large liquidation over the past 24 hours, with approximately $400 million getting wiped out. Nearly 118,000 traders lost their positions, with the single largest liquidation order happening on BitMEX valued at $4.95 million. The data was taken from Coinglass.
Bitcoin unsurprisingly experienced the largest liquidation with over $121 million, or 2,700 BTC, lost. Ethereum followed with $63.58 million liquidated.
Most of the liquidations were from long positions, which accounted for 83.14% of all liquidations. The markets were experiencing a healthy rise upwards, with bitcoin crossing $47,000, but now the asset is back to just under $45,000.
Liquidations also crept up yesterday, with over $100 million ETH liquidated in 24 hours. But today’s positions have been far more brutal, and analysts will undoubtedly dig into what is going on. Traders will not be happy with how things are going and will certainly be more careful going forward.
And their caution will be well warranted, as there is a spate of news related to regulation that may do even more harm to their portfolios. The EU, U.S., and U.K. have all accelerated their regulation attempts, and 2022 is shaping up to be a monumental year in that regard.
One of the most talked-about changes in recent times was the move to ban proof-of-work networks, which was rejected. Still, there are many others that will follow, and this will have the market on edge. On the plus side, adoption does appear to be picking up.
Crypto Market Could See More Red as Regulation Takes Hold
The crypto market experienced an abrupt drop in value over the past 24 hours. Analysts have put this down to the recent EU vote on unhosted wallets, which would bring many privacy-related changes to the market.
The EU amendment was roundly criticized by the crypto community, who said it would spell the end of privacy. The change would require exchanges to keep tabs on the personal information of users. Although it has not been officially passed into law yet, it is much closer to it.
The $400 million liquidations could perhaps be linked to the EU amendment, though it is difficult to pinpoint why exactly it has happened. Once market prices go down, it tends to have a cascading effect. The following months may have more in store for the market, as governments and global organizations tighten their grip.