As a researcher with a background in finance and experience in the crypto market, I find the recent market trends fascinating but also concerning for short-term traders. In the last day alone, over 78,000 crypto traders have seen their positions liquidated, leading to losses of over $330 million.
With Bitcoin and Ethereum reaching new peak prices, short-term traders have faced significant losses due to liquidations. Yesterday, more than $330 million in cryptocurrency trades were terminated, the vast majority of which involved shorts who anticipated prices would decline once more.
Over 78,000 Traders Liquidated For $330 Million
Over the past 24 hours, data from Coinglass reveals a turbulent period for crypto traders. Approximately 78,000 traders experienced position liquidation, resulting in substantial losses totaling hundreds of millions of dollars.
Approximately $268.76 million out of the total liquidation amounting to $330 million was attributed to short traders, representing around 81.42% of the figure. Conversely, long traders were responsible for only $61.31 million in liquidations.
In contrast to the common pattern, Bitcoin didn’t trigger liquidations on this occasion. Instead, it lagged behind Ethereum. This can be explained by the fact that Ethereum’s price soared by more than 20% within a day, while Bitcoin only managed to hold onto gains of approximately 6%.
As a researcher examining the cryptocurrency market, I discovered that approximately 32% of the total liquidations amounted to around $105.13 million on Ethereum (ETH) at the given moment. Notably, the largest single liquidation occurred on the ETH-USDT pair traded on Huobi exchange, resulting in a loss of roughly $3.11 million for the trader.
In contrast, the Bitcoin market experienced liquidations totaling $96.53 million. Similar to Ethereum, most of these liquidations were instigated by short traders. Following Bitcoin in terms of liquidations is Solana, with a figure of $21.53 million. Notable mentions include Dogecoin with liquidations of $7.42 million and PEPE with $4.3 million.
Bitcoin And Ethereum Lead Market Rally
In the past 24 hours, the market has experienced significant upturn, primarily driven by Ethereum. Bitcoin has also contributed to this trend. It’s worth noting that the SEC has recently requested that cryptocurrency exchanges revise their 19b-4 filings. These documents are crucial for any Spot ETFs seeking approval in the United States.
With the growing optimism in the market, there was a noticeable uptick in sentiment as investors anticipated the green light for Spot Ethereum ETFs. In line with this development, Bloomberg analysts James Seyffart and Eric Balchunas reassessed their prospects for these funds, significantly increasing their estimation from a meager 25% to a robust 75%.
Over the past few days, I’ve observed Ethereum’s price fluctuating around the $3,100 mark. However, something intriguing transpired as this digital currency began to surge, breaking through the resistance level and reaching new heights above $3,700. Simultaneously, Bitcoin took a significant leap, surpassing the $71,000 threshold, leading to an exceptional day in the crypto market during the year 2024.
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2024-05-21 15:40