The recent crash in the crypto market has left traders reeling, with Bitcoin and altcoins experiencing a significant downturn. As Bitcoin’s price continues to plummet, traders are facing massive losses, totaling hundreds of millions of dollars in just the past 24 hours. The market-wide panic has resulted in a cascade of liquidations, with over 105,000 traders being forced to close their positions due to the sharp decline in prices.
According to data from Coinglass, a staggering $292.8 million worth of crypto liquidations have occurred in the last day alone. Long traders have borne the brunt of these losses, with 88.61% of the liquidations being long positions. The majority of these liquidations occurred in the wake of Bitcoin’s drop from $61,000 to $57,000, resulting in $204.97 million in losses within a span of 12 hours. Notably, Bitcoin and Ethereum have seen the largest liquidations, with $91.7 million and $69.86 million in losses, respectively.
The Huobi exchange witnessed the single largest liquidation event, with a massive $10.49 million lost in a single call on the BTC-USD pair. Other major exchanges, such as Binance, OKX, Bybit, and CoinEx, also recorded significant liquidations totaling in the millions. This widespread liquidation event has underscored the vulnerability of long positions in a volatile market environment.
Despite the dominance of long liquidations in the recent market turmoil, there are signs of a potential shift in sentiment. As Bitcoin’s price shows signs of recovery, the percentage of long liquidations has decreased from 88.61% to 56.48% in the last hour. This shift suggests that short traders may begin to feel the pressure as the market dynamics evolve. With the daily trading volume of Bitcoin experiencing a notable 50% increase, there is a growing sense of uncertainty and volatility in the market.
Amidst the aftermath of the market crash, Bitcoin is currently trading at $57,909, reflecting a 3.87% decline in the last day. While the cryptocurrency has experienced a 5.23% decline on the weekly chart and a 15.95% decline on the monthly chart, there are indications that bulls are attempting to establish support levels. The next crucial juncture will be whether Bitcoin can sustain its upward momentum and avoid further declines.
The recent liquidation event in the crypto market has exposed the vulnerabilities of traders in a highly volatile environment. As the market continues to grapple with uncertainty and fluctuating prices, traders must exercise caution and closely monitor market trends to navigate the turbulent waters of the crypto market.