Binance’s CZ Resolves Crypto Crash As Long Liquidation Surpasses $343M

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Crypto Crash News: The global cryptocurrency market saw a massive sell-off on Saturday as fear among traders grew due to recent regulatory actions by top financial watchdog. Cumulative market capitalization fell more than 5% after recording a large rally over the past day. Binance CEO Changpeng Zhao addressed the current market situation facing legal complications.

Also Read: Binance CEO Refers to SEC Chat Evidence in Internal Staff Letter

Long Position Liquidations Drive Crypto Crash

According to data from Coinglass, more than 184,000 traders have been liquidated in the last 24 hours. The total recorded liquidation amounts to 387 million dollars. Bitcoin, the largest crypto in the world, has witnessed the bulk of the sell-off (worth around $50 million) over the past day.

The data shows that out of the cumulative liquidation of $387 million, 88% of the liquidation (worth approximately $343 million) turns out to be long positions. While only $43 million worth of shorts have been liquidated. This suggests that traders were betting on market gains. However, Binance recorded a liquidation worth $151 million in the past 24 hours, where $129 million in long positions were liquidated.

The digital asset market saw a broad sell-off as the prices of top cryptos like Polygon (MATIC) and Solana (SOL) fell by 25% and 22%, respectively. Read more crypto news here

Source: Coinglass DataCZ Dispersion of FUD?

Changpeng Zhao, the head of Binance, addressed the crypto crash by saying that no one really knows why the market is going up or down. However, many people claim to know the real reason and will often associate it with a single, often mistaken reason. He added that there were many traders in the market and each might have their own reason.

Also read: XRP lawsuit verdict could prove crucial for Coinbase, Binance: lawyer

Binance CEO pointed out the fake story where someone said Binance converted their holdings to fiat. He showcased the fact that Binance’s fiat/stablecoin reserves had dwindled. The world’s largest crypto exchange crypto reserves have grown over the past few months/weeks, he added.

He mentioned the second story doing the rounds on social media that claims $1.3 billion worth of altcoins on Robinhood could be sold. However, CZ added that he had no idea.

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