• Bitcoin’s price crashed to $22.2K in minutes, causing a considerable tick in liquidations of around $243 million across the board.
• Silvergate Bank revealed operational challenges leading many crypto companies to abandon ship, but the nature of the crash was too quick for it to be directly related.
• Intra-day trader 52Skew clarified that the crash was due to a large Binance spot sale directly into an area of stacked up longs, which caused a margin call.
Recent Crash Causes Liquidations
The recent crash of Bitcoin’s price caused a considerable tick in liquidations, standing at around $243 million across the board for the past 24 hours.
Silvergate Bank Recent Challenges
Silvergate Bank recently revealed operational challenges which led many crypto companies to abandon ship, however, the nature of the crash seemed too quick for it to be directly related.
Reason For Crash Clarified
Intra-day trader and creator of delta-based trading systems 52Skew took it to Twitter to clarify that the reason for this particular crash was due to a large Binance spot sale directly into an area of stacked up longs, which caused a margin call.
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The reason behind Bitcoin’s price crashing down is still unclear; however, intra-day trader 52Skew clarified that it may have been due to Binance spot sale and stacked up longs causing a margin call.