Mass Liquidations Hit Traders as Crypto Market Takes a Tumble

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Traders took a heavy beat­ing in the last 24 hours with over 180,000 see­ing their posi­tions liq­ui­dat­ed, with bit­coin los­ing the most.

After look­ing like it might break out of its slump, the cryp­to mar­ket has tak­en anoth­er blow, with over $500 mil­lion liq­ui­dat­ed in the past 24 hours. Bit­coin has dropped to approx­i­mate­ly $25,350, Ethereum to $1,320, and most alt­coins expe­ri­enc­ing dou­ble-dig­it drops.

$210.8 mil­lion of those liq­ui­da­tions were BTC liq­ui­da­tions and $157.6 mil­lion ETH liq­ui­da­tions. The oth­er big losers were FLM with $13 mil­lion liq­ui­dat­ed, and SOL with $12.7 mil­lion. Long posi­tions account­ed for most of the liquidations.

68.11% of traders going long lost their posi­tions. The major­i­ty of these were on OKX and Binance, which account­ed for about 60%.

180,358 were liq­ui­dat­ed, which is a high num­ber by even the market’s recent stan­dards. It is clear that many were not expect­ing bit­coin to drop even fur­ther, and the move has shak­en some investors. 

The total mar­ket cap now stands at $1.07 tril­lion, down 7.4% over the past 24 hours. This is one of the biggest drops yet, and the likes of Fan­tom, Axie Infin­i­ty, Waves, and Nexo have suf­fered the most.

This is a tough time for the mar­ket, which has been see­ing a lot of pos­i­tives in terms of infra­struc­ture, devel­op­ment, and reg­u­la­tion, but this has not nec­es­sar­i­ly been reflect­ed in the numbers. 

Q3 is shap­ing up to be a piv­otal peri­od in the con­text of where the mar­ket may go in the near term future. That could go both ways, as it has quick­ly bounced back from such cir­cum­stances in the past.

Traders hit by heavy liquidations in recent months

Bit­coin and the rest of the mar­ket has expe­ri­enced heavy drops in price in the past three months. Liq­ui­da­tions hit $500 mil­lion in late May, and $260 mil­lion ear­li­er that month. How­ev­er, there have been even lean­er peri­ods, with Oct 2021 see­ing over $900 mil­lion in liq­ui­da­tions in 24 hours.

There have been vary­ing opin­ions on how this will affect the mar­ket in the near term future. Some are wor­ried that this will be quite a slow­down in terms of growth. Oth­ers show that char­ac­ter­is­tic HODL spir­it and are uncon­cerned about these large drops.

Even promi­nent fig­ures hold that author­i­ty, and MicroS­trat­e­gy Michael Say­lor is the most well-known of these. Say­lor said that he had zero fears of anoth­er cryp­to win­ter.

Disclaimer

All the infor­ma­tion con­tained on our web­site is pub­lished in good faith and for gen­er­al infor­ma­tion pur­pos­es only. Any action the read­er takes upon the infor­ma­tion found on our web­site is strict­ly at their own risk.

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