• CFTC is suing Binace for allegedly breaking trading and derivatives rules. This caused a sell-off in the crypto market with Bitcoin going down to $26,600.
• Liquidations were plenty, with over $100 million losses in the past 4 hours for the entire crypto ecosystem according to Coinglass. There have been realized losses of around $65 million in the past few hours.
• This is not a capitulation event compared to previous dates this year, such as Jan 26 and March 7, which saw hundreds of millions of losses.
Crypto Market Sell Off
The Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against popular cryptocurrency exchange Binance, alleging that they had broken trading and derivatives rules. This news caused a sell-off in the crypto market, with Bitcoin declining to $26,600.
The liquidations following the news were plentiful, with over $100 million lost by traders in the past four hours across the entire crypto ecosystem according to Coinglass data. Furthermore, there have been realized losses amounting to approximately $65 million within this time frame as well.
Comparison To Previous Dates
This sell-off event should not be considered as ‘capitulation’ when compared to large loss events like those seen on January 26th and March 7th earlier this year where hundreds of millions were lost during those instances.
Charts & Graphs
Below are several charts and graphs illustrating these changes:
BTCUSD: (Source: Trading View)
Liquidations: (Source: Coinglass)
Realized Loss: (Source: Glassnode)
Overall it appears that there has been a notable dip in prices due to Binance’s legal troubles with CFTC but it cannot be considered an extreme event when comparing it to other large scale losses that have occurred earlier this year like those seen on January 26th and March 7th which led to hundreds of millions being lost.