Bitcoin Flash Crash Washes Out 81,000 Crypto Traders For Over $220 Million

This week, Bitcoin began with a downturn and plunged below $69,000 following a sudden price drop, referred to as a “flash crash.” Despite some subsequent price improvement, the event left thousands of crypto investors scrambling to exit their leveraged trades.

81,000 Crypto Traders Lose $220 Million

Recently, Bitcoin experienced a sudden drop in price, dipping below the $68,800 mark. This unexpected decline has left many crypto traders facing losses. Over the past 24 hours, approximately 81,000 traders have suffered this fate, as their leveraged positions were closed out. The market’s response to this event was swift, resulting in a significant increase in liquidation volumes.

Based on Coinglass’s statistics, more than 81,400 crypto traders suffered losses and had their positions liquidated during the crash. A staggering amount of over $223 million was wiped out in total from these liquidations. Notably, the largest single liquidation occurred on OKX’s ETH-USD-SWAP trading pair, with a trader losing a significant sum of $7 million when their position was forcibly closed.

Based on our anticipation, the lion’s share of losses has been incurred by long traders. According to Coinglass data, a staggering 70.01% of all liquidated positions were long positions. Consequently, the volume of long liquidations surpassed $156 million within the past 24 hours.

In terms of total liquidation volumes, OKX led the way with a 46.87% share, equating to $104.61 million. Binance followed closely behind with a 38.72% share and $86.41 million in liquidations. Bybit ranked third with a 8.4% share, or $18.75 million, in liquidation volumes.

Bitcoin, Ethereum, And Dogecoin Lead Liquidations

It’s common sense that Bitcoin and Ethereum, being the crypto assets with the highest trading volumes, have recorded liquidation amounts of $36.1 million and $28.98 million respectively. Yet, meme coins like Dogecoin and PEPE are also experiencing a surge in their respective numbers.

The total value of Dogecoin trades that were closed due to market conditions amounted to $10.4 million in the last 24 hours. This surpassed Solana’s liquidation volume of $8.3 million. Following closely behind Solana was PEPE, with liquidation volumes reaching $7.1 million.

Long-term investors in cryptocurrencies have experienced significant losses throughout this market. Even over shorter periods, the outlook for these investors remains unfavorable. According to Coinglass data, long traders were responsible for 85.64% of liquidations within the last 12 hours. Furthermore, they accounted for 6.182% in the 4-hour timeframe and an alarming 72.62% in the 1-hour period. In simpler terms, long investors are losing a substantial amount of their investments in cryptocurrencies, both in the short term and long term.

Regarding Bitcoin’s price, bulls are facing challenges as the cost is pushed back by resistance at $69,500. At present, the price stands at $69,450 based on Coinmarketcap’s data, representing a 1.1% decrease in the previous day.

Bitcoin Flash Crash Washes Out 81,000 Crypto Traders For Over $220 Million

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2024-04-01 18:04