Cryptocurrency: Over 1,018,638 investors account worth about $10 billion liquidated as altcoins crash by 20%

A large number of crypto investors have had their accounts frozen as a result of the recent decline in the value of a number of altcoin assets.

For the day, about 1,018,638 investors had their accounts liquidated, totaling about $10 billion. The largest single liquidation order, worth $68.73 million, was placed on Binance-BTC.

Ethereum, the flagship altcoin, is under heavy selling pressure, trading at $1,952 as of this writing, down 21.46 percent on the day. Since March 12, 2020, this is the biggest daily decrease.

Such a fall pushed Ethereum’s market value to $247.15 billion, or 12.16% of the total cryptocurrency market value. At its highest, Ethereum’s market value was close to $300 billion.

On the altcoins side, the sudden crash at the time of writing this report could not be fully assessed, but market sentiments point to rumours that the U.S. Treasury is planning to charge several financial institutions for money laundering using crypto.

Top cryptos such as XRP lost as much as 21.17%, Polkadot and Litecoin were down by 20%, bitcoin cash down 20% for the day, while dogecoin has lost about 15% in value.

Also Read: Coinbase brings cryptocurrencies to Wall Street

Many weeks ago, leading United Kingdom financial regulator, the Financial Conduct Authority, issued a piece of stern advice on crypto investments. The statement highlighted the risks associated with investing in Bitcoin and other crypto assets and warned the public that there were high chances that all their funds could be lost.

“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns".

"Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” said the FCA.

However, several crypto investors seem to be brushing off the massive drop as yet another typical stumbling block on the crypto path, one that will undoubtedly see crypto trading activity return as investors seek to buy what many see as a bargain, to buy into what is still very much a bullish run.