The recent crash in the crypto market has sent shockwaves throughout the industry, especially for Bitcoin and altcoins. The market-wide panic has resulted in significant losses for traders, with tens of thousands of positions being liquidated within a 24-hour period. The Bitcoin price has been on a downward spiral, plunging below $57,000 at one point before experiencing a slight recovery. However, the damage has already been done, leaving many long traders reeling from the losses.
Data from Coinglass reveals that a staggering $292.8 million worth of crypto liquidations occurred in the last day alone. A total of 105,458 traders were liquidated, with an overwhelming 88.61% of them being long traders. The majority of these liquidations happened within a 12-hour window as Bitcoin plummeted from $61,000 to $57,000, resulting in $204.97 million in liquidations. Furthermore, Bitcoin accounted for $91.7 million in liquidations, while Ethereum followed closely behind with $69.86 million.
The most significant liquidation event occurred on the Huobi crypto exchange, where a single liquidation call led to a loss of $10.49 million. Other major exchanges also recorded substantial liquidations, with Binance at $122.67 million, OKX at $89.83 million, Huobi at $42.07 million, Bybit at $23.04 million, and CoinEx at $9.42 million. These figures underscore the widespread impact of the market crash on traders across various platforms.
The liquidations in the crypto market have predominantly affected long trades due to the continuous decline in Bitcoin’s price. However, as the price of Bitcoin shows signs of bouncing back above $57,900, shorts are starting to feel the pressure. Coinglass data indicates that long liquidations have decreased from 88.61% in the last 24 hours to 56.48% within the last hour. If the price continues to rise, short traders may face additional challenges as the market sentiment shifts.
Despite the negative sentiment following the market crash, Bitcoin’s daily trading volume has witnessed a significant 50% increase, reaching $37.59 billion. This surge in trading activity suggests that bulls are starting to establish support levels that are crucial for the market’s recovery. As of now, Bitcoin is trading at $57,909, reflecting a 3.87% decline in the last day, a 5.23% decrease on the weekly chart, and a 15.95% drop on the monthly chart.
The recent market crash has had far-reaching implications for traders and the overall crypto market. The liquidations and fluctuations in Bitcoin’s price highlight the volatility and unpredictability of the market. While the current recovery signals a glimmer of hope, traders must remain cautious and vigilant in navigating the turbulent waters of the crypto industry.
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