The crypto currency market liquidation has crossed the $1 billion mark in the last 24 hours. This is according to data from CoinGlass.
In crypto trading, liquidation can happen when a trader wants to minimise losses. Simply put, the trader closes a trading position by converting crypto assets into a stable coin or fiat currency.
The liquidation follows reports of global market sell offs, high unemployment rate in the US and fears over a possible recession in America.
The data available on CoinGlass shows that almost 300,000 traders had liquidated in the last 24 hours. Bitcoin accounts for $375 million followed by Ethereum with $354 million in liquidation.
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Binance leads the chart on individual exchange with a total liquidation of $427.6 million. OKX follows with $334.47 million. The global business environment seem tense at the moment due to the uncertainty of the US economic climate.
This uncertainty has triggered a major sell off in the global market. Berkshire Hathaway slashed its stake in Apple Inc. by selling off about 116 million shares, close to a 12.8% reduction.
Also, the Dow Jones Industrial Average plunged by nearly 1,000 points. As a result, investors are now worried about a possible US economic recession. Some of them are asking for a cut in the interest rate cut by the US Federal Reserve.
This dynamics have now affected the crypto market. It is witnessing record level liquidation in the last 24 hours as Bitcoin and other currencies have also plummeted heavily.
