Crypto-currency market faces unprecedented collapse; liquidations reach $220 million

The global digital assets market continued to register another decline on Friday. The crypto-currency market crash comes after the U.S. Securities and Exchange Commission’s (SEC) latest crackdown on the sector. The cumulative cap on the crypto-currency market has fallen by 3.6 percent in the last 24 hours. However, it still stands at the crucial $1 trillion level.

Despite the drop in the crypto-currency market cap, its 24-hour trading volume increased by 15% to $74.1 billion.

Increased volatility in the crypto-currency market

According to the data, more than 83K traders liquidated more than $220 million in crypto market funds in the past 24 hours. However, the largest single liquidation order of $4 million took place on the OKX crypto exchange.

Ethereum (ETH) is proving to be the biggest loser among the largest crypto assets. The price of ETH has fallen more than 5% in the past 24 hours. However, Ethereum seems to be leading the sell-off amid the recent drop in trader sentiment. Data shows that more than $52.2 million has been liquidated on ETH in the past day.

However, traders have liquidated about $52 million of Bitcoin (BTC) in the past 24 hours. The price of bitcoin fell more than 3 percent to trade at $21,870, as of press time. However, its 24-hour trading volume rose 4% to $30 billion.

Is the SEC responsible for the collapse?

The cumulative cap on crypto-currencies has seen a sharp drop after rumors circulated that the US SEC is looking to get rid of crypto-currency staking. However, reports have revealed that Kraken has reached a deal with the US watchdog.

The troubled crypto exchange will have to end its operations related to staking digital assets.