Data Shows Crypto Market Liquidations Amid Bitcoin’s Plunge Under $60,000
In a surprising turn of events in the crypto market, Bitcoin has experienced a sudden crash, dropping below the $60,000 mark, undoing its recent recovery trend.
- The cryptocurrency plummeted under $59,000 during the recent crash but has managed to bounce back to $59,900, although it remains significantly down by about 4% in the last 24 hours.
- Other digital assets have also followed Bitcoin’s bearish movement, with many altcoins witnessing losses less severe compared to BTC’s decline.
- Given the substantial volatility in the crypto market recently, the derivatives market has seen a significant shakeup.
Crypto Derivatives Market Sees Massive $319 Million Liquidations
Recent data from CoinGlass reveals that the crypto derivatives market has been hit by a wave of liquidations, with a significant number of contracts being forcefully closed due to accumulating losses.
- An analysis of the liquidation data indicates a total of $319 million liquidated across the cryptocurrency market in the last 24 hours.
- Long contract holders bore the brunt of the liquidations, accounting for over $261 million, representing more than 80% of the total liquidation amount.
- The uneven distribution between long and short positions can be attributed to the market crash that affected Bitcoin and other digital assets during this period.
Breakdown of Liquidations by Leading Cryptocurrencies
Bitcoin and Ethereum, the two largest cryptocurrencies, have seen significant contributions to the liquidation figures, with Ethereum surprisingly catching up to Bitcoin’s numbers.
- The gap between the liquidation amounts for Bitcoin and Ethereum was less than $6 million, indicating a closer margin compared to usual instances of Bitcoin dominating liquidation statistics.
- This revelation comes despite Ethereum’s negative returns mirroring those of Bitcoin during the market downturn.
- The trend points towards heightened speculation surrounding Ethereum in recent times, with investors opting for leveraged positions, resulting in increased volatility and subsequent liquidations.
Hot Take: Brace for a Volatile Crypto Market Following Recent Liquidation Trends
Following the substantial liquidation events in the crypto derivatives market and the sudden crash experienced by Bitcoin and other digital assets, investors should be prepared for heightened volatility and potential market fluctuations in the coming days.
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