The crypto markets experienced a significant decline on late Thursday, with Bitcoin (BTC) plummeting to as low as $25,000 on the Binance cryptocurrency exchange.
Curve CEO Michael Egorov has committed to allocate 34% of CRV's total market cap as collateral for loans across various DeFi protocols. This decision raises concerns as a compelled liquidation could lead to selling at a time when prices are already in decline.
CoinGlass data reveals that the price surge in the past 24 hours has led to the liquidation of an impressive $36.6 million worth of short positions, making it the highest liquidation volume recorded this month.
Cryptocurrency prices took a steep plunge on Monday following the U.S. Securities and Exchange Commission (SEC)'s filing of a lawsuit against the crypto exchange and its CEO for numerous violations of federal securities laws.
In just one hour, the CoinDesk Market Index (CMI), which monitors the overall performance of the cryptocurrency market, suffered a significant 5.6% decline.