Bitcoin Drop Triggers Over $71 Million in Liquidations Across Exchanges

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As an analyst with several years of experience in the cryptocurrency market, I cannot help but feel a sense of unease as I observe the recent wave of liquidations that has swept through the industry. The events of June 18, which saw up to $500 million in losses for investors, have left many traders reeling and questioning their strategies.

On June 18, a significant decline in prices led to widespread selling off of cryptocurrencies across various platforms, costing investors approximately $500 million collectively. Since then, bears have continued to dominate the market, causing several altcoins to drop below their May peak levels. As of June 20, over $71 million worth of crypto assets had been liquidated within the last day.

Impact on Traders

Based on information from blockchain analysis firm CoinGlass, approximately 32,831 traders experienced liquidations during this period. The majority of these occurrences happened on prominent exchanges including Binance, OKX, Bybit, HTX (previously known as Huobi Global), and BitMEX.

Approximately $32 million in losses were incurred by Binance users, with OKX accounting for around 35% of this amount. The combined worth of terminated positions surpasses $24 million across both exchanges.

Based on information from CoinGlass, the largest individual liquidation order occurred on OKX. This transaction, valued at approximately $1.1 million, was related to the ETH/USDT trading market.

Bitcoin and Other Altcoins

With regard to asset type, users of Ethereum (ETH), based on price data, suffered the most significant losses when over $18 million worth of leveraged positions were closed on the network. The long position holders experienced approximately $9 million in collective losses, while short position traders endured a harsh defeat of around $10 million.

Regarding Bitcoin’s (Bitcoin’s price data holds the largest market dominance in the crypto sector), there were approximately $11.1 million worth of leveraged positions that were liquidated.

In simpler terms, bears, who had bet that the price would go down, made a profit of over $6 million by closing their positions, while long traders, who had bet on a price increase, experienced a loss of approximately $5 million.

As a crypto investor, I’ve noticed that other altcoins weren’t immune to the bearish market conditions. Based on the data from CoinGlass, it appears that both long and short traders suffered significant losses, totaling approximately $8.55 million.

In the past 24 hours, the digital assets including Solana (SOL) and Dogecoin (DOGE) saw a total of $5.94 million being liquidated. Specifically, Solana had $4.73 million worth of its price data getting liquidated, while Dogecoin experienced $1.21 million in liquidation.

Continuous Liquidations

In the crypto market, liquidations due to price declines have become a frequent occurrence, with bears seemingly always active. Within the past hour, numerous traders have experienced this unwanted outcome.

Over the past brief timeframe, approximately $1.58 million has been lost in the crypto market based on CoinGlass data. Traders holding open leveraged positions on Bitcoin, Ethereum, ORDI, NOT, NEAR, NEO, and WLD have suffered substantial losses.

During this period of market instability, it is advised that investors and traders practice caution and implement risk reduction techniques to limit possible financial setbacks.

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2024-06-20 11:45