Bitcoin (BTC) experienced a sudden 5% decline on April 12, resulting in traders with leveraged positions in Bitcoin and other cryptocurrencies suffering losses of over $400 million within an hour.
During the late New York session trading hours, BTC dropped from $68,341 to as low as $65,110 in less than 60 minutes.
Following in Bitcoin’s footsteps, Ether (ETH), the second largest cryptocurrency by market capitalization, also fell by 8%, going from an opening price of $3,553 to trading at $3,226.
Data from Coinglass’s futures market reveals that Bitcoin’s flash crash led to over $417 million in leveraged positions being wiped out within an hour. Of this figure, Bitcoin longs accounted for over $77.93 million and Ether longs accounted for more than $63.35 million.
The majority of short and long liquidations occurred on Binance, totaling $171 million, while traders on the crypto exchange OKX suffered combined losses of $158 million.
Within the past 24 hours, Coinglass reported a total of $860 million in liquidations among 270,993 traders.
The crash coincided with a dip in U.S. stock markets during the U.S. trading session, following new data that showed inflation accelerating for the third consecutive month. The hotter-than-expected Consumer Price Index (CPI) print further diminished hopes for Federal Reserve rate cuts this year, raising concerns that efforts to control high price levels may be stalling.
JPMorgan Chase CEO Jamie Dimon issued a warning on April 12, stating that “persistent” inflation, geopolitical tensions, and the Fed’s Quantitative Tightening efforts pose a threat to an otherwise positive economic outlook. In the bank’s first-quarter earnings results announcement, Dimon noted that the market is likely to be burdened by “persistent inflationary pressures, which may likely continue.”
It is important to note that this article does not provide investment advice or recommendations. It is always crucial for readers to conduct their own research and analysis before making any investment or trading decisions.