The earthquake involving cryptocurrencies overwhelms the markets and causes sensational losses. This is the collapse in the price of Bitcoin and Ether, on August 18, which brought the two cryptocurrencies to two-month lows, triggering a series of liquidations for thousands of traders.
According to data from CoinGlass, a total of 176,752 traders have been liquidated in the past 24 hours. 90% of these liquidations took place in the last 12 hours. The billion-dollar liquidation is the largest liquidation event in the cryptocurrency sector in the past eight months, following the collapse of FTX, the latest episode of its kind.
In fact, during the price crash, an investor in Binance's ETHBUSD contract liquidated at $1,434.37 for a loss of $55.9211 million, making it the largest liquidation of the day. Another Binance trader on the BTCUSDT contract lost nearly $10 million.
The price change in the cryptocurrency market has been attributed to several factors, including the sale of Bitcoin by SpaceX and the macroeconomics.
What's a Bitcoin
The Bitcoin network allows for the pseudo-anonymous possession and transfer of coins.
The data necessary to use your bitcoins can be saved on one or more personal computers or electronic devices such as smartphones, in the form of a digital wallet, or kept with third parties that perform functions similar to a bank.
The bitcoin wallet has an address identified by an alphanumeric code that has between 25 and 36 characters between numbers and letters. It is the only data to be communicated to receive a payment that will enjoy a certain degree of anonymity, but will be publicly and immutably visible on the blockchain forever.
You must be very careful when transmitting the alphanumeric code as any errors do not allow you to cancel the operation and cause the loss of money. You can receive payments more simply by scanning QR codes. In any case, bitcoins can be transferred across the Internet to anyone with a bitcoin address.
The peer-to-peer structure of the Bitcoin network and the lack of a central body make it impossible for any authority, governmental or otherwise, to block transfers, seize bitcoins without possession of the relevant keys or devalue due to the entry of new currency.
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