Crypto Market Sees $135M in Liquidation as Bitcoin Nears $70K

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As a seasoned analyst with over two decades of experience in financial markets under my belt, I must say that the recent market developments in the cryptocurrency space are nothing short of exhilarating. The rollercoaster ride we’ve witnessed over the past few days serves as a stark reminder of the volatile nature of this burgeoning asset class.

In the past day, there’s been a significant surge in liquidations within the cryptocurrency sector, totaling over $135 million. This spike comes as Bitcoin (BTC) nears the $70,000 threshold, which has taken many investors by surprise, causing losses for approximately 54,843 traders worldwide.

Bitcoin, last seen at such highs since its peak in March when it momentarily touched $73,000, is climbing again. This surge in BTC’s value has sparked enthusiasm throughout the market, yet it has also initiated a cascade of margin calls or liquidations on significant crypto platforms like Binance, OKX, and Bybit.

Short Traders Losses $95M to the Bears

Based on information from CoinGlass, a key player in monitoring crypto market dynamics including liquidations, it appears that the majority of these losses were sustained by traders who had made bold bets with high leverage, anticipating either a price turnaround or a smoother increase. As Bitcoin approached $70,000, their positions were compulsorily closed, leading to substantial financial setbacks.

In simpler terms, those who bet against Bitcoin (short traders) suffered significant losses estimated at about $95 million over the last 24 hours. On the other hand, long traders, who anticipated its rise, experienced fewer losses, with around $40 million in liquidations. The total amount of money lost was approximately $135 million when this information was compiled.

The widespread sell-offs in the market were primarily instigated by the escalating prices of prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Apecoin (APE), and Dogecoin (DOGE). Data from CoinGlass indicates that traders of Ethereum experienced the most significant losses, approximately $28 million in liquidations, followed by Bitcoin traders who incurred around $25 million in losses.

Apecoin and Dogecoin saw $15 million and $8 million in liquidations, respectively, while other cryptocurrencies experienced a collective loss exceeding $14 million. XRP

XRP
$0.55



24h volatility:
1.6%


Market cap:
$31.16 B


Vol. 24h:
$993.25 M

, in particular, registered up to $700,000 in liquidations in the past 24 hours alone.

As a crypto investor, I recently witnessed a staggering event unfold on Binance – the exchange that hosts a significant portion of my investments. A trader there suffered a massive loss of approximately $7 million in the Ethereum/USDT trading pair, marking one of the largest liquidation orders I’ve seen. To put it into perspective, this single incident accounted for more than half of the total liquidations across all exchanges at that time. It serves as a stark reminder of the volatile nature of the crypto market and the importance of carefully managing my positions.

Recent Liquidation Trends amid Market Rebound

The liquidation trend has remained consistent since the market rebound last week following several months of massive decline. On October 16, Coinspeaker reported that crypto traders suffered an enormous liquidation of more than $300 million in a single day.

Yesterday, October 15th, approximately 64,100 traders experienced a collective loss worth around $184.88 million. Of this total, roughly $48.62 million was due to Bitcoin-related liquidations.

In simpler terms, those who bet on Bitcoin’s price falling suffered the most again, as they predicted a continued decrease in its value. Traders of Ethereum also experienced substantial losses, totaling approximately $30.22 million, with the majority of these losses occurring among those who had shorted the cryptocurrency.

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2024-10-21 11:18