Following what appears to be yet another wave of regulatory moves to crack down on cryptocurrencies in China, the market has unexpectedly turned red for Bitcoin, according to market analysts.
The Chinese government, according to Coinscreed, is continuing its efforts to further restrict access to the whole cryptocurrency industry.
The country’s central bank published a statement in which it stated that digital assets are outlawed, and that trading on exchanges will also be barred.
The market reacted harshly, with Bitcoin’s price plummeting by more than $3K in a matter of minutes, despite the fact that much of this isn’t new information.
It didn’t stop there, as the price dropped below $41,000 in a matter of minutes before recovering to where it is currently trading at roughly $41,400 per share.
This resulted in a tremendous number of positions being liquidated, the vast majority of which were long positions.
According to data from Bybt, more than $418 million worth of longs and shorts were wiped off the market, with longs accounting for nearly 70% of all long positions.
The highest single liquidation order ever placed on OKEx was a BTC order with a face value of about $7 million, and it occurred on the exchange.
The vast majority of the liquidations took occurred on Binance, which accounted for almost 33% of the overall amount.