Bitcoin, the world’s most valuable digital currency, dropped below $32,500 on Monday after a sharp decrease of 8% in the last 24 hours. The latest Bitcoin sell-off has accelerated liquidations across the crypto market.
According to the latest data posted by crypto platform bybt.com, approximately $800 million worth of long crypto positions got liquidated within a single day. This number includes more than $500 million worth of long Bitcoin positions.
Overall, more than $1 billion worth of cryptocurrency trading positions were liquidated in the last 24 hours. Additionally, over $200 million worth of long Ethereum positions were liquidated in the same period, followed by XRP ($40 million) and Dogecoin ($25 million).
The total market cap of Bitcoin plunged below $600 billion on Monday, its lowest level since 9 June. The world’s largest cryptocurrency is now trading near $33,000, which is down approximately 48% from its all-time high of above $64,000 in April 2021.
“Bitcoin plunged over the weekend as China stepped up its crackdown on crypto. Despite having traded back up to the $40,000 range at the beginning of last week, it has now dropped back to trading below $34,000. The Chinese government announced it was extending its crackdown on crypto-assets mining, including in Sichuan province, one of the biggest regions for mining in the country,” Simon Peters, Market Analyst at social trading platform eToro, commented.
China’s Impact on Bitcoin
The latest announcement from China had a significant impact on Bitcoin and other cryptocurrency assets. The panic among traders triggered massive liquidations due to an uncertain environment.
“26 of the largest mining projects in the region were ordered closed by the authorities as they conduct investigations, local Chinese media reported per the Financial Times, placing additional pressure on one of the most valuable mining regions in the world. Local governments in cryptocurrency mining locations Inner Mongolia, Qinghai Xinjiang and Yunnan have all now taken steps to shut down mining operations,” Peters added.