The swings in cryptocurrencies come amid a volatile period for financial markets. Spiking inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.<\/p>\n
The omicron variant of the coronavirus has also led to risk aversion over concerns about what it might mean for global economic reopening.<\/p>\n
Global stocks are down more than 4% from a record in November, while haven assets like Treasuries have rallied.<\/p>\n
Some leveraged buyers of Bitcoin were flushed out in Saturday\u2019s crash, according to Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore.<\/p>\n \u201cMarkets have also been jittery with all the uncertainty around omicron, with cases now appearing in many countries,\u201d he said. \u201cIt\u2019s hard to say what that means for economies and markets and hence the uncertainty.\u201d<\/p>\n About $2.4 billion of crypto exposure, both long and short, was liquidated on Saturday, the most since Sept. 7, according to\u00a0data<\/a><\/strong>\u00a0from Coinglass.com.<\/p>\n Bitcoin, famed for its volatility, has shed about $21,000 since hitting a record on Nov. 10.<\/p>\n But it\u2019s still up more than 60% this year, a return that exceeds many other assets — and El Salvador\u2019s President Nayib Bukele said the country had again bought the dip, adding 150 coins. The nation this year adopted Bitcoin as legal tender.<\/p>\n El Salvador just bought the dip! 🇸🇻<\/p>\n 150 coins at an average USD price of ~$48,670 🥳#Bitcoin<\/a>🎄<\/p>\n \u2014 Nayib Bukele 🇸🇻 (@nayibbukele) December 4, 2021<\/a><\/p><\/blockquote>\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2021\/12\/Bitcoin-flash-crash-Coingecko-2021-12Dec-4.jpg\")
<\/a><\/p>\nLeveraged Positions<\/h3>\n
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