Crypto Market Loses $96M in Liquidations as Bitcoin Price Drops to $65,000

by

As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market volatility. However, the recent downturn has been particularly brutal. The sudden drop in Bitcoin’s price last week, followed by massive liquidations and losses for long traders, left me feeling uneasy.

I, as an analyst, have observed that the cryptocurrency market has experienced considerable volatility lately, with Bitcoin (BTC) and various other digital currencies finding it challenging to reclaim their peak values reached in March 2024.

Last week, Bitcoin experienced a decline of approximately 2.5%, dropping from a peak of $69,547 to a low of $66,018. This downturn led to the liquidation of around $200 million worth of leveraged positions. The trend persisted, and on June 17th, Bitcoin dipped even lower to reach $65,890.

A single sell-off initiated a cascade of substantial losses within the market, resulting in approximately $96 million being wiped out over the past day. Around 53,234 traders, having placed significant wagers on Bitcoin’s potential price growth, were impacted by this development.

Long Traders Hit with $62 Million Losses

Based on information from blockchain analysis firm CoinGlass, long investors incurred approximately $62.14 million in losses during this timeframe, whereas short investors saw relatively smaller losses totaling around $32.91 million.

As a market analyst, I’d rephrase that as follows: The cryptocurrency market experienced significant turbulence recently, with Ethereum taking the brunt of the damage. Approximately $21.36 million worth of Ethereum positions were liquidated during this period. In contrast, Bitcoin users saw around $10.54 million in liquidated trades.

Approximately $21.31 million in value was collectively lost from the prices of various cryptocurrencies, including Solana (SOL), Worldcoin (WLD), meme coins like PEPE (PEPE), and Dogecoin (DOGE).

Over the past day, traders holding long positions on Ethereum experienced approximately $7.31 million in losses, whereas short sellers suffered around $14.05 million in losses. In the case of Bitcoin, long position holders reported roughly $6 million in losses, and short sellers saw about $4.48 million in losses.

Centralized Exchanges Bear the Brunt

Centralized exchanges saw the majority of the liquidations, with Binance handling the largest individual order worth approximately $4.21 million.

Binance, the world’s largest crypto exchange, contributed more than half of the funds liquidated from the crypto market in a single day. According to CoinGlass, Binance users lost about $48.21 million, accounting for 51.07% of the total liquidations. Other crypto exchanges, such as OKX, Bybit, and Huobi Global (recently rebranded as HTX), also suffered significant losses. These digital asset trading platforms liquidated around $29.63 million, $8.17 million, and $5.83 million, respectively, representing 31.16%, 8.59%, and 6.16% of the total liquidations.

Over the past few days, I’ve noticed a significant trend in market liquidations – they have predominantly taken place on centralized cryptocurrency exchanges. On June 7th alone, a staggering $400 million was wiped out from the market during these liquidations. Exchanges such as Binance, Kraken, and Bybit were at the forefront of this unfortunate event.

Over the past week, centralized exchanges witnessed a total of $190.97 million in liquidations.

Read More

2024-06-17 14:06