The cryptocurrency markets experienced a significant downturn on Monday morning, characterized by a 5% drop in Bitcoin value within a short span and substantial losses across various altcoins. This resulted in liquidations amounting to hundreds of millions in the past few hours.
In the last 24 hours, digital asset prices have taken a nosedive, leading to losses exceeding $400 million for nearly 120,000 cryptocurrency traders. According to data from Coinglass, around $356 million of these liquidations were linked to long positions, signifying the largest single-day loss due to long speculation in the past four months. Short traders also incurred losses, which amounted to approximately $54.79 million.
Bitcoin traders experienced the most significant impact of these losses, with total liquidations amounting to roughly $104 million. Long positions in Bitcoin were responsible for $90.9 million of this sum, while short positions made up the remaining $12.12 million.
Ethereum, Solana, XRP, and More Experience Heavy Losses
Investors in Ethereum also suffered significant losses, with liquidations of approximately $74.62 million in long positions and $6.52 million in short positions. Traders holding long positions in other cryptocurrencies, including Solana, XRP, Dogecoin, Avalanche, Cardano, and Litecoin, also experienced considerable losses during this period.
In terms of exchanges, OKX and Binance recorded the highest losses, with liquidations surpassing $171 million and $128 million, respectively. The largest individual loss noted was a long position on Bitcoin’s price on the OKX exchange, which amounted to $8.2 million.
Bitcoin, the cryptocurrency with the highest market capitalization, experienced a drop of approximately 5%, reaching a low of $41,649, before bouncing back to its present value of $41,906 at the time of reporting. It is worth noting that throughout the day, Bitcoin’s price continues to fluctuate.
The drop in Bitcoin’s price sparked a downward trend in other leading cryptocurrencies such as Ethereum, which also fell nearly 5%. This was followed by significant losses in other major cryptocurrencies including Solana, XRP, Binance’s BNB, and Cardano, marking some of their most substantial declines in the past few weeks. The crypto market has been slowly showing signs of recovery during afternoon operations.
