The cryptocurrency market has suffered one of the worst losses in recent times, as almost half a trillion dollars got wiped off the market.
For the day about 741,520 traders got liquidated, with the largest single liquidation order happening on Huobi-BTC, valued at $67 million.
Bitcoin at the time of writing plunged as low as $32,000, as institutional investors added more selling pressures with Ethereum also losing as much as 40%, while joke token, Dogecoin was down by almost 50%.
The global crypto market cap is $1.53 trillion, a 25.63% decrease over the last day.
Crypto-related stocks also recorded significant losses with Coinbase losing as much as 5% in premarket trading.
Recent price actions further reveal the flagship crypto has now lost all its gains achieved after Tesla’s announcement that it would purchase $1.5 billion worth of Bitcoin. It is also down about 45% since hitting a record high last month.
Current reports that Chinese financial regulators have curbed financial institutions from involvement with cryptocurrencies weighed heavily on investors’ sentiments.
Recall that a few weeks ago, the Governor of the Bank of England, Andrew Bailey warned investors against excessive exposure to cryptocurrency investments as they have no intrinsic value, meaning that investors could lose all their funds invested in such assets.
In addition, it was an unpleasant trading session for most altcoins with Ethereum breaking as low as $2,400. Cardano, Litecoin, Binance Coin, and Tron have lost more than 20% amid the ongoing panic in the crypto market.
Shiba Inu, Chiliz, PancakeSwap, OKB, Nano, Horizen, VeChain, are just a few others that have posted losses as much as 45%.
Recent price actions also suggest that crypto sellers are holding sway as the flagship crypto broke below a strong support level of $35,000, though market pundits anticipate a form of stability around $34,000 in the near term, as market indicators reveal the crypto market is in an oversold position.