2023-08-18 23:11:49
Traders lose more than BRL 5 billion with a drop in the crypto market
Blockmarket – The great devaluation of cryptocurrencies that happened in the last few days surprised many investors. In total, more than BRL 5 billion were lost by traders in operations with (BTC) and other digital assets.
Bitcoin alone fell more than 10% this past Thursday (17). In addition to it, other cryptocurrencies suffered losses that were not recovered until the end of the afternoon of this Friday (18).
Therefore, with the unexpected sharp devaluation of bitcoin, many traders were liquidated in open operations in the crypto market. They lost around BRL 5.2 billion during this last big drop in prices.
Traders are liquidated in the crypto market
Much of the losses in cryptocurrency investments happened in derivative and leveraged operations. In bitcoin alone, something close to $500,000 was lost by traders in the crypto market.
But, when adding bitcoin to the losses of investments in cryptocurrencies, the damage exceeds R$ 5 billion, or even around US$ 1 billion. Traders were liquidated on yesterday’s last cryptocurrency drop (17).
Data on the crypto market still show that 80% of this lost value, that is, BRL 4 billion, represented long positions of traders. In this case, the investor was betting on the appreciation of cryptocurrencies, however, what happened was the opposite and these positions were liquidated.
What made the price of bitcoin fall?
Shortly after the price of bitcoin plummeted in the crypto market, some reasons were raised by investors as being causes for the unexpected devaluation of cryptocurrencies.
The first hypothesis talks about the interest rate in the United States. With more controlled inflation and a reduction in the country’s interest rate, the devaluation of cryptocurrencies would have accompanied this movement in the US economy.
On the other hand, the recovery request filed by Evergrande (OTC:) is also touted as one of the reasons behind the recent devaluation of bitcoin. Currently, the price of BTC is being quoted below BRL 130 thousand, through the pair .
Losses also in
While the biggest losses for traders were on bitcoin, some investors also saw losses on ether (ETH), the network’s cryptocurrency. ETH was used by traders in derivative operations in the crypto market.
As a result, a single investor lost more than BRL 270 million in derivative operations with ether, just this past Thursday (17). He created an operation with 38 million units of ETH, believing in the appreciation of cryptocurrency.
However, the price of ETH has dropped just like the price of bitcoin in recent days. The investor was liquidated and lost something like $55 million in ether. Derivative market losses over the past 48 hours exceed $1 billion.
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