In late trade on April 26, cryptocurrency markets lost $70 billion. They had began to recover, though, during the morning Asian trading session on April 27. According to Coinglass data, there were more than $351 million in total liquidations in the last 24 hours. Furthermore, around 73% of that has occurred in the last 12 hours as a result of panic selling.
 The analytics platform revealed the most long liquidations in the previous month.Â
Bitcoin lost 7% in one hour due to a big selloff. As a result, BTC prices recently decreased to roughly $27,690.
Furthermore, Bitcoin liquidations totaled $173 million in the last 24 hours. This accounts for around half of all liquidations. In under 12 hours, $78 million in long positions and $58 million in short positions were liquidated.
However, BTC has recovered about 5% from that drop and is now trading above $29,000 at the time of writing. As a result, BTC liquidations have dropped to just $22 million in the four hours following the panic sale.
The sell-off may have been triggered by an alarm from blockchain analytics firm Arkham Intelligence. It tweeted on April 26 that the US government and Mt.Gox wallets had active transactions.
This was then widely disseminated on crypto social media, resulting in a panic sale. Traders were concerned that the government’s BTC stockpile in the Mt.Gox wallet was ready to be liquidated.
The panic dissipated when Arkham showed that this was a false alert, and crypto prices began to recover. However, industry observers have predicted that the US authorities will eventually liquidate this Mt.Gox wallet. “Today was a false alarm,” DeFi analyst Miles Deutscher said. However, the US Government + Mt. Gox Bitcoin WILL move in the near future. Be ready for when it happens.”
He believes that the government should just keep the BTC. “Not sure why they’d want to sell hard money into a depreciating shitcoin (USD),” he added, before adding, “The smart thing to do would be to accumulate MORE Bitcoin, and try and reintroduce (some) kind of monetary standard after screwing things up in 1971.” The panic dump and pump boosted crypto market volatility during a relatively tranquil period.
