In the ever-fluctuating world of cryptocurrency trading, a staggering $110 million in long positions have been liquidated within a mere 24-hour window. This rollercoaster ride was largely orchestrated by Bitcoin and Binance, causing a stir among investors and traders alike.
The surge and fall of crypto prices have left many reeling as Bitcoin experienced its highest peak in 18 months, only to swiftly plummet back to the $34.5K range in a single day. Let’s delve into the details of this crypto market whirlwind.
Massive Liquidations Rock the Crypto Sphere As we report this, over $110 million worth of long positions in the cryptocurrency market were liquidated during the past 24 hours. Interestingly, Coinglass data reveals that around $22 million worth of short positions were also liquidated. In sum, a total of $132.91 million worth of liquidations occurred, affecting 51,553 traders during this tumultuous period.
Bitcoin, as the leading cryptocurrency, contributed significantly to these liquidations, with over $38.85 million worth of long positions liquidated within this timeframe. Ethereum and Solana also faced substantial liquidations, reaching $21.78 million and $10.7 million, respectively.
Notably, the most significant single liquidation during this period took place on the Bitmex exchange with the XBTUSD pair, where $2 million worth of positions were liquidated.
Several major crypto exchanges, including Binance, OKX, Huobi, Bitmex, and Bybit, were at the forefront of these liquidations, accounting for $67.79 million, $43.15 million, $12 million, $4 million, and $3.83 million, respectively.
The Cryptocurrency Price Rollercoaster The recent rollercoaster ride in crypto token prices is the driving force behind the ongoing liquidation frenzy in the crypto markets. Bitcoin’s price has been oscillating between peaks and troughs for approximately two weeks, surging to $36K, a level not seen since May 2022.
On November 1, Bitcoin’s price was hovering around $34.25K, but it swiftly surged to $36K on November 2. However, within just 24 hours of reaching this peak, Bitcoin retraced to $34.5K.
This sudden surge followed by a 4% drop is the primary catalyst for the ongoing liquidation of long positions. At the time of writing, Bitcoin continues to show hints of further declines, with a 2.34% decrease in the past 24 hours.
Ethereum’s performance also suggests the possibility of ongoing price plunges, having experienced a 2.1% drop in its price in the past 24 hours.
In a similar vein, Cardano and MASK, which witnessed significant liquidations in short positions, have recorded positive price actions, gaining 4% and 16%, respectively, in the past 24 hours.
The Impact on Traders The dramatic swings in cryptocurrency prices have left many traders and investors on edge. The liquidation of long positions has led to significant losses for those who bet on the upward trajectory of these digital assets.
While some traders have managed to profit from short positions during these market fluctuations, the overall sentiment remains uncertain. The crypto market’s inherent volatility and unpredictability have made it a challenging arena for both seasoned and novice traders.
Investors are closely watching these price movements, with some opting to take a cautious approach, while others are actively engaging in short-term trading strategies to capitalize on the market’s erratic behavior.
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