Markets
A wave of large-scale liquidations sweeps the crypto market
6:00 p.m. ▪ 3 min reading ▪ by Fénelon L.
The crypto market was rocked by a $96 million wave of liquidations, triggered by the bitcoin price falling to $65,000. This sharp decline led to the liquidation of leveraged positions for tens of thousands of traders, primarily on centralized exchanges.
Bitcoin and altcoins struggle to regain their peaks
THE crypto market has been experiencing a period of intense turbulence for several months, with bitcoin (BTC) and other digital assets struggling to return to the peaks reached in March 2024.
Last week, BTC fell 2.5% from $69,547 to $66,018, leading to the liquidation of leveraged positions worth almost $200 million. This downtrend continued, with bitcoin reaching $65,890 on June 17.
This fall triggered a wave of massive liquidations, with approximately $96 million wiped from the market in 24 hours. According to CoinGlass, long traders suffered losses of $62.14 million, while short traders recorded a more modest loss of $32.91 million.
Ethereum was hit the hardest with $21.36 million liquidated, followed by Bitcoin with $10.54 million.
Centralized exchanges on the front line
Liquidations took place primarily on centralized exchanges, with Binance recording the largest liquidation order at $4.21 million. The world’s largest cryptocurrency exchange accounted for more than half of the funds liquidated in a single day, with its users losing approximately $48.21 million, or 51.07% of total liquidations.
Other platforms such as OKX, Bybit, and Huobi Global (renamed HTX) also suffered significant losses, liquidating $29.63 million, $8.17 million, and $5.83 million, respectively.
Since the beginning of June, liquidations have taken place on centralized stock exchanges. By June 7, losses had already reached $400 million, and last week the sector recorded liquidations amounting to $190.97 million.
In summary, this wave of liquidations highlights the continued volatility of the crypto market and the risks associated with leveraged positions. As bitcoin and altcoins struggle to regain their all-time highs, traders must remain cautious and adjust their strategies to navigate these turbulent waters.
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Fenelon L.
Passionate about Bitcoin, I like to explore the intricacies of blockchain and cryptos and I share my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.