Chinese journalist Colin Wu, who covers all things cryptocurrency market, tweeted that the Hong Kong stock market has crashed. Notably, Hong Kong’s Hang Seng index lost almost 7% that day, hitting a 52-week low. The crypto market has also faced selling pressure. According to stock market records, $312 million worth of Bitcoin long positions were liquidated. Bybit managed more than half of the losses, followed by Binance, OKEx and FTX. In El Salvador, he continues to buy Bitcoin at low prices. What happened? We continue with the details…
(Wu Blockchain) Hong Kong stock market crash triggered a drop in global markets and cryptocurrencies. The main reason for this is Evergrande, China’s largest real estate company, with debts of about 2 trillion. Tether announced that it does not have Evergrande commercial votes.
Hong Kong stock market fell
According to Chinese journalist Colin Wu, the bloodbath facing the global crypto market was caused by the 10.24% drop in the stock collapse of Evergrande Real Estate Group. Prior to that, the index also fell 17%. According to the 2021 Fortune Global 500 List, Evergrande Real Estate Group is the second largest property developer in China in terms of sales. It is also the 122nd largest group in the world in terms of profit.
Other Hong Kong real estate giants also faced a massive stock sale, including Henderson Land Development Co. According to Wu, Evergrande has almost $2 trillion worth of debt. Growing concerns over the debt crisis of one of the largest real estate companies have swept from bank stocks to high-yielding dollar bonds and Ping An Insurance Group Co. hit a wide variety of markets, from stocks. 24-hour losses in the crypto market reached 15%…
Bitcoin faces $312 million liquidation
cryptocoin.com As reported, the leading cryptocurrency fell almost 9% from $48,700 on Saturday to $44,436 earlier today. The Bitcoin (BTC) market witnessed massive liquidations worth $312 million in a single hour. On the Bybit exchange alone, almost half of the Bitcoin positions were liquidated: $153 million.
Data from crypto exchanges shows multiple fluctuations in BTC supply, which could lead to more selling if Bitcoin continues to drop below the $45,000 support level. The altcoin market is also in the red today after taking a bitter blow from the news about Evergrande Real Estate Group. Bloomberg Crypto tweeted about the Evergrande Group influence:
Cryptocurrency prices slumped amid a massive sell-off sparked by contagion concerns from China, as Evergrande Group is sweeping global markets.
El Salvador collects Bitcoin from the bottom
Still, the community continues to buy at the bottom. El Salvador’s president Nayib Bukele tweeted that the country’s government has now purchased another 150 Bitcoin, holding a total of 700 BTC. Over the weekend, the president boasted over 1.1. Millions of local residents had downloaded the locally produced Chivo BTC wallet. Each of them received $30 worth of BTC for taking this step.
What happened in altcoin projects?
With Bitcoin, crypto traders and investors had a rough Monday morning as they woke up to double-digit percentage losses across the market. Major-volume cryptos Solana, XRP, Cardano, and Ethereum have hit or approached their weekly losses above 10%. According to Coinmarketcap data, Solana traded at -12%, Cardano -7% and XRP -8% from yesterday’s highs. Terra (LUNA) – 11%, Algorand (ALGO) – 13% and Theta (THETA) – 11% down.
93% of traders took a “long” position
‘Liquidations’ occur when traders borrow excess capital from brokers/exchanges (i.e. ‘margin’ or trading futures) to place larger bets on the cryptocurrencies they are trading. Exchanges close these positions at a predetermined price, while paying a flat fee to do so.
Data from analytics tool Bybt shows that $620 million has been liquidated in the last 24 hours alone. Of these, Bitcoin came in at over $220 million in liquidations, followed by Ethereum at $126 million. XRP saw $45 million worth of liquidations, while Solana, EOS, Cardano, and Avalanche saw liquidations worth $26 million, $14 million, $13 million, and $10 million, respectively. A staggering 91% of all liquidated traders were on the “long” side of the market, meaning they had taken positions because they were betting on higher prices. On the other hand, only $52 million of short positions were liquidated.
Futures exchange Bybit, known for its Degen investors, has managed the most $249 million liquidation of any other crypto exchange. It was followed by Binance, OKEx and FTX with $135 million, $117 million and $76 million. In total, 139,753 traders were liquidated and the largest single liquidation order was on Bybit. This Bitcoin transaction was worth $7.17 million.
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