How GovGen will demonstrate the application of governance in blockchain development, according to Cosmos co-founder

Blockchain technology has gained significant attention in recent years due to its potential to revolutionize various industries. One of the...

Bitcoin Network Congestion Decreases as Mempool Clears in February Bitcoin, the world’s most popular cryptocurrency, has been facing network congestion...

Fintech Solutions for Transactions in Competitive Gaming: Exploring Payments and E-Sports The world of competitive gaming, also known as e-sports,...

CAB Payments CEO Resigns After Underwhelming LSE Initial Public Offering In a surprising turn of events, the CEO of CAB...

In recent years, there has been a growing emphasis on environmental, social, and governance (ESG) initiatives across various industries. Companies...

Fidelity’s FBTC ETF Surpasses $4 Billion as Bitcoin ETF Market Flourishes The world of cryptocurrency has been buzzing with excitement...

Insights from NPC’s Camilla Åkerman on Managing Payment Complexities at NextGen Nordics 2024 The NextGen Nordics 2024 conference held in...

Title: British SMEs Suffer £2.8 Billion Loss in 2023 Due to Excessive Bank FX Fees Introduction In 2023, British small...

S&P Global Highlights Potential Impact of Spot Ethereum ETFs on Staking Concentration The recent surge in popularity of cryptocurrencies has...

In a recent announcement, Toast, a popular restaurant management platform, revealed that it will be cutting 550 jobs across its...

Coinbase International Exchange Achieves $1 Billion in Daily Trading Volume Coinbase, one of the leading cryptocurrency exchanges in the world,...

Hong Kong Introduces Regulatory Standards for Tokenized Financial Products In a move to embrace the growing trend of tokenized financial...

Augmented reality (AR) has become a buzzword in recent years, revolutionizing various industries and transforming the way we interact with...

Augmented reality (AR) has become a buzzword in recent years, with its potential to revolutionize various industries. One area where...

OpenWay, a leading digital payment solutions provider, has recently been recognized as one of the top five digital wallet solutions...

Fintech Singapore Welcomes Cybersecurity Expert John Yong to NETS Board Singapore’s fintech industry has recently welcomed cybersecurity expert John Yong...

The European Central Bank (ECB) has recently shed light on an alarming trend among banks regarding the potential introduction of...

Coinbase Data Suggests More Growth Potential for Bitcoin, Indicating the Euphoria Phase is Still Distant Bitcoin, the world’s most popular...

Vitalik Buterin, the co-founder of Ethereum, recently provided a compelling explanation on how artificial intelligence (AI) can significantly enhance security...

Revenir AI, a Fintech company, has recently launched an innovative mobile VAT reclaim solution aimed at making the process of...

Revenir AI, a Fintech firm, has recently launched an innovative mobile VAT reclaim solution aimed at making the process of...

The Rise of Digital Payments: Exploring the Convenience of Tap, Click, and Pay In recent years, digital payments have experienced...

Revolut Announces Launch of New Crypto Exchange and Potential Listing of Solana’s BONK Memecoin Revolut, the popular digital banking and...

Title: ECB Executive Addresses and Alleviates Worries About Privacy Issues Related to the Digital Euro Introduction As the world moves...

A Preview of NextGen Nordics 2024: Anticipated Highlights and Insights from the Upcoming Conference The NextGen Nordics conference is an...

A Preview of NextGen Nordics 2024: Anticipated Highlights and Insights from the Conference The NextGen Nordics conference is an annual...

Checkout.com, a leading global payment solutions provider, has recently reported experiencing over £100 million in losses. This news has sent...

Tron Founder Introduces Bitcoin Layer-2 Solution while BTC DeFi Surpasses $1.2 Billion in Total Value Locked (TVL) In the ever-evolving...

Bitcoin experiences 3.5% decline due to negative perpetual funding rate and 180M liquidations within 4 hours.

Bitcoin, the world’s largest cryptocurrency, experienced a 3.5% decline in its value on May 19, 2021. This sudden drop was attributed to a negative perpetual funding rate and over $180 million worth of liquidations within just four hours.

Perpetual funding rate is a mechanism used in cryptocurrency trading to balance the demand and supply of long and short positions. It is calculated every eight hours and determines the amount of funding that long and short traders pay or receive. When the perpetual funding rate is negative, it means that short traders are paying long traders, indicating a bearish sentiment in the market.

On May 19, the perpetual funding rate for Bitcoin was negative for several consecutive hours, indicating a strong bearish sentiment among traders. This led to a sell-off in the market, causing Bitcoin’s price to drop from around $40,000 to $38,000 within a few hours.

In addition to the negative perpetual funding rate, over $180 million worth of Bitcoin positions were liquidated within just four hours. Liquidation occurs when a trader’s position is automatically closed by the exchange due to insufficient margin or collateral. This happens when the price of the asset moves against the trader’s position, causing them to lose money.

The sudden liquidations were triggered by the sharp drop in Bitcoin’s price, which caused many traders to panic and sell their positions. This led to a cascade of liquidations, further exacerbating the sell-off in the market.

The combination of the negative perpetual funding rate and the liquidations caused a significant decline in Bitcoin’s value. However, it is important to note that this is not an uncommon occurrence in the cryptocurrency market. Bitcoin and other cryptocurrencies are known for their volatility, and sudden price swings are not unusual.

Despite the temporary decline in value, many experts remain optimistic about Bitcoin’s long-term prospects. The cryptocurrency has been gaining mainstream acceptance in recent years, with major companies like Tesla and PayPal accepting it as a form of payment. Additionally, many institutional investors have been investing in Bitcoin, indicating a growing interest in the asset class.

In conclusion, the recent decline in Bitcoin’s value was caused by a negative perpetual funding rate and over $180 million worth of liquidations within just four hours. While this may be concerning for some traders, it is important to remember that volatility is a common feature of the cryptocurrency market. Many experts remain optimistic about Bitcoin’s long-term prospects, and the asset continues to gain mainstream acceptance and institutional investment.

Ai Powered Web3 Intelligence Across 32 Languages.