Investors and crypto traders betting Bitcoin will drop, lost over $361 million in Binance, OKex, and BitMEX.
The largest single liquidation order happened on Bitmex-BTC valued at $10 million.
— Rafael Schultze-Kraft (@n3ocortex) February 8, 2021
What this means: The mass liquidation of such crypto holdings, according to data retrieved from Glassnode showed that such occurred before the flagship crypto gained more than $7,000 for the day as the world’s most valuable car company, Tesla disclosed that it bought about $1.5 billion of the crypto asset in January and expected to start accepting it as a form of payment in the future.
Crypto pundits interviewed by Nairametrics are saying that a market correction might come after the present bullish move. However, the bullish trend currently in play seems to be gathering momentum, largely due to the high presence of institutional investors like Tesla, Microstrategy
That being said, it’s important to note that crypto trading exhibits a significant amount of risk
Some weeks back, the United Kingdom’s leading financial regulator, Financial Conduct Authority, recently issued a piece of stern advice on crypto investments.
The statement highlighted the risks associated with investing in Bitcoin and other leading crypto assets and warned the public there were high chances all their funds could be lost;
“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns. Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” it stated.