TL;DR
- Bitcoin’s Surge: Bitcoin’s value surged towards $70,000, causing over $135 million in liquidations within 24 hours, impacting 54,843 traders globally.
- Market-Wide Impact: The majority of losses came from highly leveraged bets, with short traders losing $95 million and long traders $40 million. Other cryptocurrencies like Ethereum, Apecoin, and Dogecoin also saw significant liquidations.
- Historical Context: This trend follows a recent market rebound, with previous liquidations exceeding $300 million in a single day, highlighting the ongoing volatility in the cryptocurrency market.
Bitcoin’s value surged towards the $70,000 mark, resulting in over $135 million in liquidations within 24 hours. This sudden spike caught many traders off guard, leading to significant financial losses for 54,843 traders globally.
Market-Wide Liquidations
According to CoinGlass, a platform that tracks crypto liquidations, the majority of these losses stemmed from highly leveraged bets. Traders who anticipated either a price reversal or a more gradual rise were hit the hardest. As Bitcoin’s price surged, their positions were forcibly closed, leading to substantial financial setbacks.
Short traders, who bet on Bitcoin’s price declining, suffered the most, with approximately $95 million lost. Long traders, who bet on the price rising, faced around $40 million in liquidations. The combined total of liquidations reached $135 million.
Impact on Other Cryptocurrencies
The rising prices of other major cryptocurrencies, including Ethereum, Apecoin, and Dogecoin, also contributed to the market-wide liquidations. Ethereum traders experienced the steepest losses, with approximately $28 million liquidated. Bitcoin traders followed closely, losing $25 million.
Apecoin and Dogecoin saw $15 million and $8 million in liquidations, respectively. The single largest liquidation order occurred on Binance, where a trader lost nearly $7 million in an Ethereum/USDT pair. Binance accounted for more than half of the total liquidations, highlighting the exchange’s significant role in the market.
Historical Context
This trend of liquidations has been consistent since the market rebound last week, following several months of decline. On October 16, cryptocurrency traders experienced a staggering liquidation exceeding $300 million in just one day. Just a day earlier, over 64,100 traders faced a combined loss of $184.88 million, with Bitcoin accounting for $48.62 million of those liquidations.
The recent surge in Bitcoin’s value has led to widespread market excitement but also significant financial losses for many traders. As the cryptocurrency market remains volatile, traders are advised to stay informed and exercise caution in their investments.
