864,000 Liquidations in One Day (April 20, 2021)
Good morning. Welcome to Tuesday Trades, part of our new series: BitPinas Daily. We will look at the price of Bitcoin, Ethereum and the major cryptocurrencies. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad.
Market Price as of April 20, 2021:
Bitcoin closed April 19, 2021, at $55,721 per BTC. We’re down 8% in the last 7 days and up 88% since the year began. This is also 14% below the all-time high of $64,804, which was hit on April 14, 2021.
Bitcoin’s market capitalization stands today at $1,025,367,258,163 which is 50.48% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $2,024,668,830,268 (-5.1%).
On the table above, there’s the cryptocurrency SLP. If you wonder what that is, check out this article: Playing Axie Infinity vs Minimum Basic Salary in the Philippines.
864,000 Record Liquidations in One Day
The big story is still the record number of futures liquidations during the weekend. The Block estimated roughly 864.000 liquidations, which is a single day record. Around 70% of these liquidations occurred in Binance:
A total of $8.46 billion of long positions were liquidated on April 17, the majority of them are on Binance and Huobi. Of this total, $4.6 billion were liquidations in Bitcoin futures.
Dogecoin was Briefly the 4th Largest Cryptocurrency by Market Capitalization
Dogecoin was briefly the 4th largest crypto by market cap early today, eclipsing XRP which itself just recently regained that position.
According to Coindesk, at that brief moment in time, Dogecoin’s market cap stood at $54 billion while XRP was at $50 billion. At the moment, Dogecoin is back at 5th with a market cap of $47 billion while XRP has $57 billion according to Coingecko.
But will Dogecoin reach the coveted $1? Coindesk cited a betting website where players see a 17% chance that that milestone will happen.
Some analysts think the Dogecoin price rally is a big bubble and warns of a risk of that popping soon. “65% of all Dogecoins are kept in just 98 wallets across the world,” said Akand Sitra of TRM Labs. “The single largest wallet has 28% of all dogecoins, and five wallets control 40% of the entire dogecoin supply,” Sitra added.
But truly, where Dogecoin will go from here, whether an eventual takeover of Ethereum’s market cap or a catastrophic decline, will be an interesting thing to watch unfold.
South Korea to Combat Illegal Transactions
South Korean financial institutions are promising to tighten the monitoring of crypto withdrawals and report suspicious transactions to its Financial Intelligence Unit (FIU). The country’s tax agency is also vowing to track dodgers hiding their wealth on crypto.
The move by the government appeared to be a step to ensure its rules are tight particularly on those taking advantage of the so-called “Kimchi Premium”, the premium in Bitcoin prices on Korea’s crypto exchanges.
Turkey Bans Crypto Payments
Bloomberg reported that the Turkish Central Bank has banned the use of crypto as payment beginning April 30. The reason is that the level of anonymity, the central bank says, brings the risk of irrecoverable losses.
This means companies that handles payments and electronic transfers from processing transactions involving crypto and crypto platforms are prohibited from doing so.
What else is happening
- Latest Bitcoin Crash Shows ‘Buy the Dip’ Mentality Among Big Investors, NYDIG Says
- Bloomberg’s McGlone Warns of ‘Predominant Deflationary Forces’
- TIME Partners with Crypto.com to Offer Cryptocurrency as a Form of Payment for Digital Subscriptions
- Bahamas Tops China in Ranking of Central Bank Digital Currencies
- Ether Locked in DeFi at All-Time High After Market Crash
This article is published on BitPinas: 864,000 Liquidations in One Day (April 20, 2021)