Crypto saw a drop in the markets early on Tuesday (Dec. 28), which then resulted in around $300 million in liquidations among numerous crypto futures contracts, according to data from Coinglass.
CoinDesk reported that there were over 109,000 traders’ positions liquidated in the past day, and while bitcoin prices were up above $52,000 on Monday, they fell around $3,000 on Tuesday.
Meanwhile, Polkadot was among the biggest losses in bitcoin’s fall, CoinDesk reported Tuesday, with an 8% fall after being a top gainer on Sunday (Dec. 26).
The report adds that solana, cardano and XRP were also suffering losses, on average around 3.4%.
Polkadot was doing well last week, likely due in part to a second batch of parachain auctions on the network. Parachains are distinct blockchains running over the main Polkadot network.
Furthermore, bitcoin mining stocks were also down as bitcoin fell, a Tuesday report from Investing.com says.
Bitcoin’s price was around $48,355 on Tuesday, and bitcoin miners are susceptible to any kinds of change in the price actions. The stock also faced pressure from Roth Capital analyst Darren Aftahi’s price target lowering from $55 to $46.
In other news, there are around 434,265 bitcoin-pegged or Wrapped Bitcoin tokens worth over $21.3 billion across numerous blockchains, per a Tuesday report from Bitcoin.com.
There are ten different bitcoin-pegged projects today, and the Wrapped Bitcoin project had around 60% of all the tokenized bitcoin in circulation. Around the end of 2018, when tokenization was getting more popular in the space, there were numerous bitcoin-pegged protocols, and Wrapped Bitcoin eventually became the most popular one.
Additionally, Iran has ordered a shutdown of crypto mining centers as a way to try and soothe the strain on power plants — the second time this has happened this year, per Bloomberg.
The idea is to try and avoid blackouts, according to Mostafa Rajabi Mashhadi, power industry spokesman and director of the state-run Iran Grid Management Co. The ban will be in place through March 6 and will free up 209 megawatts of power for household consumption.
Also, DeFi portfolio firm DeBank has raised $25 million in a funding round, Coindesk reported Tuesday.
DeBank lets users track and analyze their DeFi investments, and the company now has a valuation of $200 million.
Continuing with bitcoin-related news, Coinbase Global shares were down Tuesday as cryptos slumped, Barrons wrote.
Bitcoin fell 7.8%, ethereum fell 7.6%, Cardano was down 9.9% and Terra was down 10.3%.
Finally, Bloomberg writes that bitcoin’s extended losses have deepened its fall in December.
The coin’s 7.2% decline was below its 200-day moving averages, and the plunge has seen investors retreating from speculative global markets, with worries of an ebbing central bank stimulus causing problems.
The Federal Reserve is also looking at taking action to stem rising prices, which could see bitcoin’s appeal falling among those looking at the crypto as a hedge against inflation.