Markets
Cryptocurrency Market Panics as Bitcoin Crashes to $57,000 Sends 105,000 Traders to the Slaying Ground
The cryptocurrency market is in a state of panic with a Widespread market crash rocked Bitcoin and altcoins. As Bitcoin’s price continues to fall from support to support, tens of thousands of traders have lost their positions, resulting in hundreds of millions of dollars in losses in the last day alone.
Cryptocurrency Market Liquidations Surpass $290 Million
Over the past 24 hours, the price of bitcoin Bitcoin’s price has plummeted, eventually falling below $57,000 before recovering again. However, the damage is already done, with long-term traders taking the brunt of the losses over the past day.
According to data According to Coinglass, $292.8 million in cryptocurrency liquidations occurred over the past day. A total of 105,458 traders were liquidated, 88.61% of which were long traders. The majority of these liquidations occurred over the past 12 hours after Bitcoin fell from $61,000 to $57,000 with $204.97 million in liquidations.
Bitcoin alone generated $91.7 million in revenue liquidationswith the second largest cryptocurrency, Ethereum, after being with $69.86 million liquidationsThe largest liquidation event took place on cryptocurrency exchange Huobi on the BTC-USD pair, where a single liquidation call resulted in a loss of $10.49 million.
Binance, the world’s largest cryptocurrency exchange, saw $122.67 million in liquidations, OKX exchange saw $89.83 million in liquidations, and Huobi exchange saw $42.07 million in liquidations. Bybit and CoinEx came in fourth and fifth with $23.04 million and $9.42 million, respectively.
Bitcoin Recovery Could Change Trajectory of Liquidations
As mentioned above, liquidations in the cryptocurrency market were mainly dominated by long trades as the Bitcoin Price Continues to Fall. However, with the price showing a tendency to bounce, exceeding $57,900 As I write this, shorts are starting to feel the heat.
Coinglass data shows that long liquidations have dropped from 88.61% in the last 24 hours to 56.48% in the last hour. If the price continues to rise, short traders, fueled by the bearish wave, could face further crashes from here on out.
Despite the erosion of positive sentiment, the Daily Bitcoin Transaction Volume Bitcoin price has seen a notable 50% increase to $37.59 billion. So far, the bulls seem to be developing support, which means it needs to be held if the rally is to continue.
Bitcoin is currently trading at $57,909, down 3.87% over the past day. It is down 5.23% on the weekly chart and 15.95% on the monthly chart.
Featured image created with Dall.E, chart by Tradingview.com