Crypto market undergoes nearly $1 billion liquidation in 24-hour period
In a recent turn of events, the cryptocurrency market has witnessed a significant downturn over the past day, resulting in almost $1 billion in liquidations that have wiped out traders' positions.
The sudden plunge comes on the heels of a volatile week that had previously seen losses amounting to $620.5 million.
Reports from Coinglass indicate that a staggering 334,404 traders were liquidated within the last 24 hours, leading to a total loss of $947.7 million. Long positions were particularly hit hard, accounting for $742.2 million of the liquidated amount.
Short positions were not spared either, with losses totaling $205.5 million. This shift suggests that the market has turned unfavorably for those anticipating price increases, resulting in substantial financial setbacks.
Noteworthy was Bitcoin's significant liquidation, amounting to $317.9 million. Long positions bore the brunt with $242.1 million, while shorts accounted for $75.8 million. Similarly, Ethereum faced a similar fate, with $248.2 million liquidated, of which $196.4 million stemmed from long positions.
The situation was exacerbated by sizeable cryptocurrency movements by key players, heightening concerns of a broader sell-off. Mt. Gox, the now-defunct exchange, notably transferred 11,834 BTC, valued at about $931.1 million, to an undisclosed address. Subsequently, Mt. Gox's cold wallet moved 332 BTC worth $26.6 million to another address, following an earlier transfer of 12,000 BTC valued at $1 billion.
As volatility surged, prompted partly by remarks from President Donald Trump hinting at a potential recession, markets worldwide took a hit, with cryptocurrencies experiencing a notable fallout. The decline erased the gains seen post the US Reserve announcement, resulting in a $1.3 trillion dip in the cryptocurrency market from its peak in December 2024.
Bitcoin, the foremost digital asset, hit a four-month low at $76,600 before recovering slightly to $79,939 at the time of reporting, marking a 3.2% decline in the last 24 hours. Ethereum also saw an 8.4% drop during the same period, trading at $1,895, the lowest level since late 2023, signaling a significant devaluation.