The cryptocurrency market has been hit really hard recently. The world’s largest digital currency, bitcoin, lost its value by about 50% within 24 hours. Amid the market turmoil, one particular trader has recently been dealt a huge blow after losing  1,220 BTC worth about $11 million at the time; when the price of <a href="https://www.cryptoknowmics.com/crypto/investors-and-traders-might-vanish-due-to-50-drop/">bitcoin plummeted by about 50%</a> within a single day.

As the downtrend of the <a href="https://www.cryptoknowmics.com/crypto/fear-and-greed-index-cause-panic-in-crypto-market/">digital currency market</a> intensifies, mass multi-million dollar liquidations may take place again. Back on Thursday last week, the price of BTC shortly fell below the $3,600 mark on BitMEX leading to liquidations of over <a href="https://datamish.com/btcusd">$1.2 billion in long term orders.</a>

A sharp correction of bitcoin’s price escalated as its price reached $5,000 from $7,900 representing approximately 35% in the price drop. The inception of pullback resulted in huge amounts of long contracts undergoing liquidation or deleverage.  As a result, the BitMEX liquidation engine initiated the sale of bitcoin worth millions of dollars.

On numerous occasions, big accounts on cryptocurrency exchanges trade with low leverage reducing the chances of a possible liquidation. However, when the BTC price plunges by about 30%-40%, even accounts trading using small leverages are not safe from liquidation. Ultimately all the accounts with over $10 million begun getting liquidated.
<h2>Insufficient BTC demand from buyers</h2>
Moving forward, a cryptocurrency trader going by the name<a href="https://twitter.com/IamNomad/status/1238441391862288385"> ‘I am Nomad’</a> on Twitter, shared a screenshot of a South Korean BitMEX user, who lost 1220 BTC worth about $11 million at the time; before the massive 50% plunge.

The price of BTC has already recovered from the $3,600 low but has twice rejected the $6,000 mark within the last 48 hours. The acute rejection at $6,000 is a frail rejection compared to the antecedent annual low of $6,400. This means that there is minimal demand for BTC from buyers with the cryptocurrency falling further <a href="https://coinmarketcap.com/currencies/bitcoin/">below the $5,000 mark.

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Bitcoin Trader Loses $11 million in less than 24 hours

The cryptocurrency market has been hit really hard recently. The world’s largest digital currency, bitcoin, lost its value by about 50% within a month... %

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Bitcoin Trader Loses $11 million in less than 24 hours

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