Here’s what happened in crypto today

Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.

Binance is considering taking legal action against payment provider and former partner Bitcoin (BTC) and Ether (ETH) prices tumbled, causing a host of liquidations in what’s been described as a “bloodbath." Meanwhile, other cryptocurrencies took a sharp dip, causing market analysts to offer several possible explanations for the sell-off.

Binance considers legal action against

Crypto exchange Binance told Cointelegraph on Aug. 18 that it is considering legal action against its former partner and payment provider The potential legal dispute came roughly one week after reportedly ended its business relationship with Binance over possible regulatory actions.

“We do not agree with Checkout’s purported basis for termination and are considering our options for legal action,” a Binance spokesperson told Cointelegraph. 

The business fallout has already impacted Binance. Earlier this week, the company confirmed that it is shutting down Binance Connect, a regulated fiat-to-crypto payment platform, due to “changing market and user needs." Binance Connect launched in March 2022 as Bifinity. 

Binance faces myriad regulatory challenges, culminating in a Securities and Exchange Commission lawsuit against the exchange and its CEO, Changpeng Zhao.

Bitcoin, Ether price slump leads to crypto bloodbath with $1 billion in liquidations

The Bitcoin and Ether price slump on Aug. 18 saw the top two cryptocurrencies fall to a two-month low and triggered a series of liquidations for thousands of derivatives traders.

The crypto bloodbath led to billions of dollars worth of hedged positions being liquidated, and several traders lost millions of dollars in a single trade.

According to CoinGlass data, a total of 176,752 traders got liquidated over the past 24 hours. About 90% of these liquidations took place within the last 12 hours, indicating a rapid rise in price volatility just days after BTC and ETH recorded their lowest daily volatility in several years.

Crypto market liquidation data. Source: CoinGlass

Among a sea of traders that lost a significant chunk of their derivative positions, two particular liquidations caught the crypto community’s eye for their sheer scale. During the price slump, an investor on Binance’s ETH/BUSD contract was liquidated at $1,434.37, losing $55.9211 million, making it the largest liquidation for the day. Another Binance trader on the BTC/USDT contract lost nearly $10 million in liquidations.

The billion-dollar liquidation day is the biggest liquidation event in crypto in the past eight months, the last such event occurring during the FTX collapse.

Biggest liquidation event of 2023. Source: TradingView

The price drop in the crypto market was attributed to several factors, including the SpaceX Bitcoin write down and the macroeconomic picture that saw BTC and ETH trading in a range for the past couple of months.

BTC held onto the key $28,000 support for a couple of months, while ETH held the $1,500 support before giving in Aug. 17. The liquidity in the crypto market has been on the lower side, and prominent crypto exchanges like Coinbase had seen a significant decline in their trading volume.

Bitcoin, crypto markets take a sudden dip

Within just a 10-minute window, the price of Bitcoin fell as much as 8% to $25,409, its lowest level in two months.

Other cryptocurrencies saw a similar dip, with the top 15 cryptocurrencies by marketcap (with the exception of stablecoins) posting red candles.

However, market analysts have had differing views as to what caused the sudden dip. Some suggest a report that Elon Musk’s SpaceX had sold its Bitcoin holdings or the bankruptcy of Chinese property firm Evergrande could have played a role.

Others have seen the rise of government bond yields, possible hikes in interest rates in the United States or the risk of the Chinese yuan devaluation as factoring into the price dip.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.


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