The sudden slide caught traders unawares, according to CoinDesk. The bitcoin price plunge forced out a significant amount of buying pressure from the market as traders were spooked. The world’s biggest cryptocurrency plummeted from £9,146 to £8,145 in just 10 minutes, sending shockwaves through the market.
It comes after the currency reached an 11-month high of £9,260, according to CoinDesk’s Bitcoin Price Index.
The dire price drop has liquidated nearly £1billion worth of positions across major exchanges, according to derivatives data provider Bybt.
A massive £110million worth of sell liquidations were trigged as a result.
The price drop also sparked closure of long positions on BitMEX, the highest since May 10, according to data source Skew.
The cryptocurrency was trading near £8,430, representing a 5.5 percent drop on a 24-hour basis at the time of writing.
But prices are still up nearly 57 percent on a year-to-date basis.
Seychelles-based exchange BitMEX also registered buy liquidations or forced closure of short positions worth £5.81million.
Within the previous 24 hours, at least 72,422 positions were liquidated, with the largest, that of £7.64 million, occurring on BitMEX.
More to follow…