Crypto Liquidation Hits $120M, Affecting Thousands of Traders

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As a seasoned crypto investor with years of experience in this volatile market, I’ve seen it all – the thrilling rises and devastating falls. The latest market recovery may have brought some relief to those who held on tight during the earlier declines, but it has also resulted in significant losses for thousands of traders.

In the last 24 hours, despite the cryptocurrency market showing signs of recovery from previous lows, the situation has brought about substantial losses for numerous traders. As per CoinGlass’s Liquidation Heatmap, over $120 million in crypto assets have been liquidated, resulting in thousands of affected traders.

At present, Bitcoin (BTC) is being bought and sold for over $67,000, while Ethereum (Ether) is changing hands above $3,100. These prices represent a significant rebound from their April lows of around $57,000 for Bitcoin and $2,800 for Ethereum. The causes of this springtime slump were attributed to escalating geopolitical conflicts in the Middle East and market adjustments following the 2024 Bitcoin halving event.

Although there was a market recovery, a unfortunate outcome was that a total of 59,032 traders experienced forced liquidation, absorbing the impact of these market shifts.

OKX Takes the Brunt of Market Volatility

Approximately $87.05 million were the collective losses of bullish traders, who had anticipated a price increase for Bitcoin and Ethereum but ended up incurring losses. Conversely, traders with bearish positions, expecting a decrease in value, reported approximately $28.31 million in losses.

Approximately 23.15 million dollars were lost by Bitcoin traders in a solitary day, and over 19.70 million dollars worth of losses were incurred by those betting on Ethereum’s price.

As a researcher studying the cryptocurrency market, I’ve discovered that traders who wagered on Solana (SOL) suffered a setback to the tune of $8.84 million in losses. Meanwhile, other digital assets collectively experienced losses amounting to $23.24 million.

As a researcher examining the data from CoinGlass’s Liquidation Heatmap, I discovered that OKX experienced the largest single liquidation order within the last 24 hours, amounting to approximately $4 million in losses.

Over $13 Million Liquidated in an Hour

The crypto market remains volatile, with traders continuing to incur significant losses.

Approximately 60,000 traders endured a total loss of approximately $56.33 million over the past 12 hours. Bitcoin accounted for around $14.43 million of that amount, while Ethereum and other cryptocurrencies contributed $7.14 million and $10.23 million, respectively. Over the previous four hours, roughly $29.36 million in trades were liquidated. Long traders suffered losses of about $10.79 million, while short positions resulted in $18.58 million in losses.

At present, the Liquidation Heatmap by CoinGlass indicates that approximately $13.22 million has been lost in the past hour due to market volatility. The significant portion of these losses, amounting to around $12.85 million, can be attributed to short traders being forced to exit their positions.

Not the First

As a researcher studying the crypto market, I’ve observed that liquidations have emerged as a frequent phenomenon. Sadly, this means traders often face significant losses as a result of market volatility.

When Bitcoin rebounded from its two-year low in March and touched its prior record-high price of $69,000, around a billion dollars worth of positions were abruptly closed within a single day.

Despite the ongoing trend, traders have unfortunately continued to incur substantial losses in the unpredictable crypto market. The shock came on March 14th when Bitcoin reached a new peak at $73,000, leaving many in the industry taken aback.

As a researcher studying the cryptocurrency market, I’ve observed an exciting development: the recent price surge marked a historic achievement for the crypto asset, reaching a new milestone prior to the Bitcoin halving event. Unfortunately, this surge came at a cost, resulting in approximately $360 million being wiped out from the market.

This month has been especially unfavorable, resulting in substantial losses through liquidations. On May 2nd, a staggering $360 million were wiped out. Two weeks later, on May 13th, approximately $130 million more was liquidated, affecting over 71,000 traders.

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2024-05-20 10:57