Crypto Market Sees Sudden Liquidations Worth $286M

The prices of crypto including Bitcoin have plunged in the last 24 hours and the market has seen huge liquidation. More than $286 million in leveraged crypto positions were liquidated from some of these digital assets.

Massive Crypto Liquidation Makes Traders Jittery

According to on-chain data from CoinGlass, about 99,014 traders were liquidated in the last 24 hours and the total liquidation registered comes in at exactly $286.26 million. Precisely, the liquidation on Bitcoin for the 24 hours was $69.2 million with $44.92 million in long trades and $22.29 million in shorts. Ethereum saw more liquidation compared to BTC around the same time. 

The liquidation on ETH was around $91.73 million. Solana (SOL), Dogecoin (DOGE), and other digital assets recorded a liquidation of $40.20 million collectively. For the 1 hour trading period, ETH saw a liquidation of $4.12 million, BTC $1.3 million, and SOL $1.01 million. Other altcoins saw liquidations of a few hundred dollars.

The massive liquidation was seen on several top exchanges including Binance, OKX, ByBit, Huobi, Bitfinex, and others. Meanwhile, the largest single liquidation was recorded on leading cryptocurrency exchange Binance. The specific drivers of this liquidation are still unclear, however, the sentencing of Changpeng ‘CZ’ Zhao might be a factor. 

Bitcoin Price Falls Below $65,000

With the daunting sell-off and the market outlook, traders have entered panic mode, especially as the liquidation wipes off slight gains recorded earlier.

After surging to $73,000 in March and finding support at $65,000 some weeks ago, Bitcoin is trading at $60,437.79 with a 4.11% price decrease in the last 24 hours. For a coin that recently had its halving event, BTC is performing poorly as judged by many metrics. Some key technical indicators have highlighted a tweaking technical structure, increasing the probability of declines to and possibly below $60,000. 

There are concerns that the slowdown in spot Bitcoin ETF hype which started a few weeks before halving, is contributing to the fall of the underlying crypto’s price. The launch of spot Bitcoin ETF in Hong Kong did not also pacify investors. This is because of the poorer than expected trading volume on the first day.

Some analysts speculate that the coin can still push beyond $70,000 and even reach as high as $100,000 post-halving. 

Ethereum is equally down by 6.46% and currently trading at $2,971.75.