$3.7 billion liquidated as crypto markets react to Biden’s tax scare

More than $3 billion in crypto positions was liquidated this morning amid a broader selloff, multiple sources have revealed. Some market observers attribute the drop to a proposal made by US President Joe Biden yesterday.

Crypto drop

Liquidations occur when traders borrow excess capital from brokers (i.e. on margin or futures) to make larger bets on the assets they trade.

You pay a fixed fee for this, while the exchanges close these positions at a predetermined price when the trader’s deposit equals the loss on that position. Such a transaction is then considered to be liquidated.

Sources close to Mr Biden said yesterday that the US would soon propose a new tax law for wealthy investors and traders that would tax up to 43.5% of profits above $1 million. There was a selloff in the stock market, followed by a selloff in the commodities market, and then a selloff this morning in the crypto market.

BREAKING: Shares fell sharply to new lows during the session; Bloomberg reports that President Biden will propose a capital gains tax for the wealthy that could reach 43.4%. https://t.co/G2vjJUIJ82 pic.twitter.com/6N6hwRWBtl

– CNBC Now (@CNBCnow) April 22, 2021

Damage

According to the Bybt analysis application, more than 500,000 individual accounts were reactivated today. Liquidations amounted to $3 billion, with bitcoin alone accounting for $1.3 billion in losses.

3.68 billion positions and 583,354 traders liquidated in 24 hours pic.twitter.com/e2ja0TNvrs

– Lex Moskovsky (@mskvsk) April 23, 2021

The largest liquidation order was placed on the cryptocurrency exchange Huobi : The bitcoin position is worth $11.28 million.

Among other large-cap algorithms, Ethereum (ETH) positions of $647.64 million were vaporized, XRP positions of $391.32 million were liquidated, and Binance Coin (BNB) positions of $137.85 million were liquidated.

Those who invested in Dogecoin last week also saw the rough side of the cryptocurrency: DOGE positions worth $245.59 million were liquidated.

At press time, bitcoin was at $48,500, Ethereum at $2,100 and BNB at $470. However, this case is not as serious as the one last weekend, when over a million trading accounts and $10 billion were liquidated.

An edge in the cryptocurrency market

Get access to more cryptographic insights and context in every article as a paid Edge member.

Chain Analysis

Price overview

More context

Join now for $19 a month Discover all the benefits

Published: Analysis, trade

$3.7 billion liquidated as crypto markets react to Biden’s tax scare

Do you like what you see? Subscribe to updates.

Related Tags:

crypto bull run 2024defi airdropscryptocurrency pricesbitcoin stock pricenew cryptocurrencybitcoin news today,People also search for,Privacy settings,How Search works,cryptocurrency prices,bitcoin stock price,new cryptocurrency,bitcoin news today,crypto bull run 2024,defi airdrops

More from author

Related posts

Latest posts

South Korea pushes ambitious crypto tax to 2023 |

South Korea’s government has revealed plans to put a definitive end to cryptocurrency speculation in the country as of 2023. In an effort to...

is BTC nears bear market territory?

Bitcoin is currently trading at around $7,700 after a recent drop from the high of close to $20k. The question arises whether this is...

Study shows Bitcoin delivered 99.996% deflation against the U.S. dollar over past decade |

Bitcoin has been a currency with an interesting track record of being deflationary. In recent years, Bitcoin’s value has increased at a much faster...