• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Technical analysis BTC

$100 Million Evaporated From DeFi Amid Bitcoin Drop to $45,000

Nick Chong by Nick Chong
4 days ago
in BTC
Reading Time: 2min read
Yearn.finance (YFI) is About to Pass a Pivotal Bull Level: Analyst
Advertisement

The Bitcoin and overall crypto market has seen a large influx of liquidations over the past 48 hours as leveraged traders have had their margin called.

Most eyes have been on the Bitcoin futures market, where more than $3 billion has been liquidated in the past 48 hours. Pain has also been felt within decentralized finance—better known as DeFi—as those that use digital assets as collateral found their loans come within certain parameters that mandated liquidation.

Related Reading: Wall Street Veteran Kickstarts Own BTC Fund With $25m Investment

$100 Million, Mostly in Wrapped Bitcoin and Ethereum, Liquidated in DeFi

In bull markets, traders often leverage their capital, either via margin trading platforms or through decentralized finance, to make more money from a perpetuation of that bull trend.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Through DeFi, users have recently begun to leverage their capital en-masse by depositing Wrapped Bitcoin and Ethereum, then borrowing against that collateral in hopes of improving their returns.

This has backfired amid the recent market bloodbath, though.

According to DeBank, which tracks liquidations in the DeFi space, more than $100 million worth of positions has been liquidated in the past 24 hours.

Chart from Debank of DeFi liquidations over time

DeBank indicates that most of this liquidation has taken place on Compound, where $100 million alone has been wiped.

Most of these liquidations have been users like the aforementioned, who deposited Wrapped Bitcoin or other heavily-utilized collateral to source a line of credit from protocols like Compound, Aave, or Maker.

Related Reading: DeFi Founder Targeted in $8m Hack Says He Has His Hacker’s IP

Long-Term Trend Positive

Bitcoin’s recent drop may have caused pain across the cryptocurrency space, though most analysts remain bullish on the asset in the long run.

Mike McGlone, a commodities analyst at Bloomberg Intelligence, recently noted that:

“#Bitcoin vs. #Tesla May Mark 2021 — Performance since the announcement that the world’s largest automaker by market cap is allocating some of its wealth to Bitcoin may indicate an inflection point favoring alternative assets, notably the crypto…”

Alternatives vs. Equities Duel: #Bitcoin vs. #Tesla May Mark 2021 — Performance since the announcement that the world's largest automaker by market cap is allocating some of its wealth to Bitcoin may indicate an inflection point favoring alternative assets, notably the crypto… pic.twitter.com/ltaoVzlNTH

— Mike McGlone (@mikemcglone11) February 23, 2021

Raoul Pal, a former head of hedge fund sales at Goldman Sachs and the CEO of Real Vision, also noted in his own analysis that BTC remains in a macro bull trend despite recent weakness.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash
Chart from TradingView.com
Price Tags: xbtusd, btcusd, btcusdt, btc
$100 Million Evaporated From DeFi Amid BTC Drop to $45,000
Tags: btcusdBTCUSDTxbtusd
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

bitcoin bid side macro

Bid Side In Bitcoin Disappears Amidst Jittering “Macro Environment”

9 hours ago
bitcoin dollar

Dollar, Divergences, & More: Here’s Why Bitcoin Could Soon Bounce

14 hours ago
Bitcoin

TA: Why Bitcoin Price Is At Risk of A Drop Below $45,000

1 day ago
bitcoin overvalued stock to flow

Bitcoin Currently Overvalued By Stock-To-Flow Standards

1 day ago
bitcoin strong bull coinbase

Coinbase Bitcoin Outflows Are The Strongest Bullish Signal “Ever”

2 days ago
Bitcoin

TA: Bitcoin Consolidates Above $50K Why BTC Could Face Bears At $52K

2 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Bitcoin Gaming Platform FreeBitco.in Acquires 3.75 Billion FUN Tokens

February 26, 2021

60-Minute IFO, 187 Times Over-Raised, 40 Times the Price, 98 Million US Dollar Marketcap: Berry Data Has Become a Bright Star on BSC

February 26, 2021

Get Your Brand New Tokens on Defiqa’s Presale

February 26, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.