Over $1B in Liquidations as Bitcoin Dumped by $4,000 in Hours
The enhanced volatility in the cryptocurrency market continues to cause pain to leveraged traders with over $1 billion in liquidations in the past 24 hours. The latest price slump came after consecutive days of sideways trading for bitcoin and most of the altcoins.
- The crypto market is well-known for its high fluctuation levels with double-digit price movements in either direction. Interestingly, the past several days were just the opposite as bitcoin stood somewhat stagnant in a range between $35,500 and $37,000.
- However, the primary cryptocurrency is not used to stay still for too long, and the bears took advantage in the past 24 hours.
- BTC traded just shy of $37,000 before it suddenly dumped by $3,000. While that was a substantial drop of its own, the situation worsened minutes later, and bitcoin lost another $1,500 of value.
- As it typically happens when BTC makes a move, the alternative coins followed suit with even more vigorous losses.
- Double-digit price dumps were evident across the entire altcoins space. Ultimately, the cumulative market capitalization of all crypto assets saw more than $200 billion evaporated in a day.
- Naturally, these developments have caused pain for leveraged traders. According to Bybt, the total liquidations in the past 24 hours are more than $1 billion.
- Somewhat expectedly, the majority (over 90%) came from long positions. A single liquidation stands out that occurred on Bybit. It involved the second-largest cryptocurrency by market cap – ether – and was worth $7 million.
