Cryptocurrency
Red Monday: Investors lose $2 billion trading crypto
The Crypto market had suddenly become overheated and record sell-offs began leading traders to lose about $2 billion.
These are surely unpleasant moments for a significant number of crypto investors on the account that roughly $2 billion worth of crypto positions most especially in the crypto futures market disappeared into thin air within a day.
The mass liquidation of such trading positions, according to data retrieved from Bybt.com, showed such occurred before the flagship crypto dipped around $46,500 today from its all-time high ($49,487).
- For the day, 306,627 traders were liquidated.
- The largest single liquidation order happened on Huobi-BTC value $21.25M.
- Over the past few days Bitcoin, with the highest dominance rate in the crypto market gained over 15% and hit an all-time high of $49,487 taking into consideration future demand for the popular crypto asset amid institutional buying.
READ: Present day cryptos won’t last long – Bank of England
The bearish trend gained momentum immediately after the flagship crypto touched $46,500 value amid several large sell orders placed above that price.
The Crypto market had suddenly become overheated and record sell-offs began leading traders to lose about $2 billion.
At the time of drafting this report, Bitcoin’s volatility ensured that no firm market direction was in control, as Bitcoin fluctuated around $46800. Sequel to the sudden correction seen in the Bitcoin market lately, it had been in on a bullish run relatively.
READ: Crypto traders suffer heavy losses of $639 million within a day
The price of Bitcoin is often volatile because of its high use for financial gain and speculating advantages used by global investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins as they would do for any other financial asset (stocks, bonds) with regulatory limitations.
What you should do: Nairametrics advises cautious buying in this fast-growing financial asset, as high market liquidity can expose you to significant losses and loss of funds. It’s highly recommended you seek advice from a certified financial advisor when buying these crypto assets.
Some weeks ago, the British financial regulator, the Financial Conduct Authority, recently issued a piece of stern advice on crypto investments
READ: Bitcoin loses $1500 in 3 mins, pigs get slaughtered in BTC market
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,” the statement read in part.
Cryptocurrency
World’s most valuable Crypto Exchange, Coinbase ready to go public
US cryptocurrency exchange, Coinbase, today, released an S-1 filing ahead of its direct listing.
Cryptocurrency
CBN Governor calls Crypto illegal money
The CBN Governor, Godwin Emefiele stated that the Crypto ban was in the best interest of Nigerians.
The Governor of the Central Bank of Nigeria, Godwin Emefiele has recently defended the apex bank’s decision in excluding cryptocurrencies from Nigeria’s financial ecosystem.
Appearing before a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime, Godwin Emefiele stated that the Crypto ban was in the best interest of Nigerians.
According to a report by an online media outlet, while addressing the Senate committee, Godwin Emefiele remarked,
“Cryptocurrency is not legitimate money. Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system.”
READ: CBN crypto ban and its ramifications for Nigerian banks
“Cryptocurrency is used to describe the activities of players in an electronic dark world” – CBN Governor. pic.twitter.com/2VQuY3HbX7
— YabaLeftOnline Media (@yabaleftonline) February 25, 2021
The head of the apex bank affirmed Nigeria’s central bank resolve in continuing its surveillance and deeper understanding of the crypto ecosystem, buttressing that its major objective remains to educate Africa’s largest economy on emerging financial risks and protect Nigeria’s financial system from the activities of money launderers, currency speculators, and foreign-based fraudsters.
Recall in a press release dated, the 7th of Feberuary 2021, the CBN had explained in detail the motives for its directive to Deposit Money Banks (DMBs) and other financial institutions to desist from transacting in and with entities dealing in cryptocurrencies.
READ: CBN claims no immunity for Emefiele as it fires back at NESG
“Due to the fact that cryptocurrencies are largely speculative, anonymous, and untraceable, they are increasingly being used for money laundering, terrorism financing, and other criminal activities. Small retail and unsophisticated investors also face a high probability of loss due to the high volatility of the investments in recent times.
“In light of these realities and analyses, the CBN has no comfort in cryptocurrencies at this time and will continue to do all within its regulatory powers to educate Nigerians to desist from their use and protect our financial system from the activities of fraudsters,” the CBN stated.
READ: CBN’s Emefiele explains why banks restructured N7.8 trillion loans to customers
What you should know: The CBN, some weeks ago issued a circular prohibiting banks and other financial institutions from carrying out transactions in cryptocurrencies or facilitating payments for crypto exchanges.
- The CBN’s directive has since gotten very harsh reactions on social media with many condemning the policy as a deliberate attempt by the government to impoverish young Nigerians who have been able to create wealth for themselves through crypto trading.
- Interestingly, Nigeria along with other countries ranked as the worst countries to start a career do not wholly accept or legally recognize cryptocurrency and other digital assets.
