Binance’s pricing glitch and a new chapter in Trump’s trade war turned a market sell-off into the largest crypto liquidation on record.
A combination of factors converged into a perfect storm on Friday, triggering the cryptocurrency industry’s largest liquidation event in history and briefly sending Bitcoin (BTC) below $110,000.
The $19 billion in liquidations doesn’t mean investors lost that sum of money, but rather that leveraged positions were forcibly closed.
The unrealized loss can be better observed through the drop in market capitalization, which shows a $450-billion wipeout. From Friday to Sunday, the total cryptocurrency market capitalization fell from $4.24 trillion to $3.79 trillion. At the time of writing, the market has already rebounded above $4 trillion.
