RE:Bitcoin tumbling this morning Leveraged Bitcoin Traders Flushed Out In Epic Overnight Crash | ZeroHedge Excerpt:
Then at midnight into the early hours of Saturday morning, during the traditionally illiquid Asian session when things normally go splat in the night for cryptos as one or more super levered Asian momentum chasers blow up, Bitcoin suffered a massive liquidation and crashed into a bear market down to the $42k level, tumbling into a bear market. Price has recovered some, now trading around $47k. ... an assessment Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore agreed with, telling Bloomberg the action overnight was leveraged buyers of Bitcoin being flushed out.
"Markets have also been jittery with all the uncertainty around omicron, with cases now appearing in many countries," Ayyar said. "It's hard to say what that means for economies and markets and hence the uncertainty."
And sure enough, according to Coinglass, over 410K crypto accounts were liquidated in the past 24 hours totaling $2.6 billion with the largest liquidation being $27 million.
The plunge is just another sign of risk aversion sweeping across global markets as equities sink and sate havens soar. Spiking inflation is forcing central banks to tighten monetary policy, reducing liquidity for risk assets.
The omicron variant of COVID-19 has also compounded risk aversion as it derails the global economic reopening.