The Nigerian eNaira was launched to much fanfare after delays had rocked the project. Upon launch, it made the West African nation one of the very first countries to issue its very own central bank digital currency (CBDC). Residents rushed to explore this new legal tender, at one point overwhelming the website with traffic. Now, […]
Bitcoin finally broke below the $40K point this past weekend. This had sent the cryptocurrency back towards six-month lows. One thing though was that liquidations or the digital asset remained lower than expected. The current liquidation volumes lay well below the volumes that have accompanied previous crashes like this one. This could be a very important indicator for the market. Bitcoin Liquidations Remain Low In Shakeout Previously, whenever the price of bitcoin had dumped this hard, liquidation volumes have quickly risen. This is due to the massive sell-offs that follow such crashes as investors try to get out of a bleeding market. This time around, bitcoin liquidation volumes have not jumped. They remain really low, indicating that maybe investors were not done selling their holdings. Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go If this is the case, then there may be more downside coming as the week runs toward the end. Massive sell-offs have already sent the digital asset to lows not seen since mid-last year. Another round of sell-offs could end up pushing the cryptocurrency’s value down below $30K. Last Friday, when the price of BTC had successfully broken below $40,000, the bitcoin futures and perpetual markets were rocked by liquidation. By the time the beginning of the weekend rolled around, over $854 million in long liquidations were already recorded. This may seem like a lot but compared to previous iterations of this type of shakeout, liquidations have fallen short. BTC liquidation volumes fall short of expectations | Source: Arcane Research May 2021 was the last time that BTC’s price had taken a similar plunge. In total, the market saw $4.8 billion worth of liquidated longs across the market. Indicating that the sell-off in May was more intense than those recorded in January of 2022. One explanation for the low liquidation volumes is that traders were able to re-allocate and add collateral to underwater trades, given that they’ve had more time to reassess their positions. Where Are The Liquidations Happening? Another reason for the low liquidation volumes could be the data available for analysis. Back in May 2021, crypto exchanges like Binance and ByBit had their bitcoin liquidation data out for anyone who wanted to have a look. Since then, there has been a change by both exchanges where they now restrict their liquidation. Now, analysts are having to guesstimate liquidation volumes using historical data from the exchanges. BTC price begins uptrend | Source: BTCUSD on TradingView.com Binance still retains dominance of the market, thus, not having access to the crypto exchange’s bitcoin liquidation data could severely affect the volumes of liquidations being reported. The crypto exchange’s dominance in the market has risen since before its data was restricted, suggesting an even larger pool of liquidations that are not being reported correctly. Related Reading | Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC Nevertheless, the liquidations have spilled into other spaces in the industry. Decentralized finance (DeFi) did not escape the onslaught in the least as it was also rocked by liquidations. Featured image from Bitcoin News, charts from Arcane Research and TradingView.com
The number of global crypto owners is expected to exceed one billion by the end of the year, according to a report by Crypto.com. “Nations can no longer afford to ignore the growing push to crypto by the public. We may in many cases expect a friendlier stance towards the crypto industry,” the company said. […]
HeritageDAO (HDAO) announced its plans to acquire two significant Korean national treasures to preserve their culture. According to reports, one art museum in South Korea is auctioning two natural treasures, the national Treasure #72 Gilt-bronze Standing Buddha Triad with Inscription of “Gyemi Year” and #73 Portable Shrine of Gilt-bronze Buddha Triad to survive the ongoing […]
MyCointainer, a platform for easy yield staking, is happy to announce the successful completion of its Seed funding round that raised $6 million from VCs and Angel investors. As per the announcement, the round was led by Mapleblock and co-lead by Shima Capital and Bybit. The event saw the participation of rich portfolios including Circle, […]
Suppose that suddenly, out of nowhere, a longest-chain appears that reorgs the last 15 blocks. Such an attack could be accomplished from time-to-time even by a minority attacker who is either lucky or pays heavily for extra temporary hashrate. Depending on how clever the attacker is, this can be quite lucrative. It’s feasible, especially if Coinbase or Binance was victimized, that an unofficial edict could go out use invalidateblock. After a short period of moderate confusion, nodes would have agreed to reject this fork, temporarily suspending Nakamoto Consensus, and Bitcoin would proceed as before, and the attacker, who spent perhaps millions of dollars executing this attack, would be chastised and impoverished, chilling the ambitions of other attackers who would attempt a similar caper.
My questions: why would we think that such a community reorg wouldn’t happen? Second, why not just have this coded into the software? If a node suddenly sees a new block appear at height 10 below the latest height the node has seen, this gets automatically invalidated. What goes wrong?