Bitcoin tumbled by nearly 20% on Saturday to test the asset’s 200D moving average for the first time since October (see chart below). The effects of a massive sell-off were more severe on offshore exchanges where Bitcoin hit $28,800.

Since the sell-off, markets have returned to early October levels with Bitcoin and Ethereum above $48,000 and $4,000, respectively. This was the largest sudden decline in price since the May sell-off when Bitcoin fell from $43,000 to $32,000 over 24-hours.

Bitcoin’s implied volatility spiked above 100% on Saturday as a series of stop-losses and liquidations were triggered. The metric has fallen back to the 70-80% range suggesting that the asset has returned to a normalized environment.

$2.5B of total crypto leveraged positions were liquidated in the same time frame as overly exposed investors faced margin calls. This is the largest liquidation since September 7, where nearly $3.2B was liquidated.

According to Coindesk, Goldman Sachs and a handful of American banks are exploring Bitcoin-backed loans. See the ‘Top News’ section for a full breakdown of the story.