@orlandolanfordcr
Bitcoin (BTC) nosedived over 3% at the start of Asian trading hours amid a broader stock market rout and weakening sentiment for risk assets such as cryptocurrencies.
BTC fell from over $65,500 to nearly $64,000 within minutes at the start of Tokyo trading. The sudden plunge led to over $250 million bullish bets being liquidated, the worst hit since early July.
Liquidations occur when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. Such data is beneficial for traders as it serves as a signal of leverage being effectively washed out from popular futures products – acting as a short-term indication of a decline in price volatility.
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