On Fridays early morning, the crypto market experienced a setback due to escalating crisis news in the Middle East. Consequently, Bitcoin‘s (BTC) value decreased from $60,000 to $59,000 for the initial time in weeks.
Recently, Bitcoin (BTC) has bounced back slightly and is now trading above $64,000. However, this uptick hasn’t been enough to make up for the significant decline that occurred previously. In fact, data from CoinGlass reveals that over $282 million in crypto assets were liquidated in a single day as a result of this downturn. This shocking loss affected numerous traders, with a total of $89,363 being wiped out.
Crypto Traders Suffer Massive Liquidation
Over the past day, short traders suffered losses amounting to over $132 million, while long traders experienced losses totaling $150 million. Additionally, according to CoinGlass, a staggering $172 million was wiped out in just the last hour due to liquidation of leveraged positions as Bitcoin surprised traders by continuing to climb.
In the past day, Bitcoin (BTC) traders suffered the most significant losses among various blockchains, with over $4 million worth of trades getting liquidated. The Ethereum (ETH) network experienced about $990,000 in liquidations, while Solana (SOL) saw approximately $559,000 in losses.
Some other blockchain platforms experienced significant losses as well. For instance, Dogecoin (DOGE) and Fantom (FTM) each lost approximately $158,000 and $172,000, respectively. The combined total loss for all the remaining networks amounted to around $293,000.
Centralized exchanges (CEXs) were affected by the liquidations as well, with the biggest single order being placed on OKX. A trader on this platform reportedly lost over $4 million in a single transaction within the past 24 hours, based on CoinGlass data. This incident underscores the risks inherent in trading cryptocurrencies, particularly during market volatility.
Bitcoin Halving 2024 Could Impact the Crypto Market
The intense selling activity continues as we approach the anticipated Bitcoin halving, set for either April 19 or 21, 2024. At present, just 100 more blocks need to be mined before this event occurs.
The cryptocurrency market, specifically Bitcoin (BTC), has a tendency to undergo substantial drops throughout its history. Prices typically see volatility around the time of halving events. Prior to these occurrences, there is often heightened excitement and conjecture among investors as they ponder the possible effects on BTC’s price.
Anticipation of potential price changes due to speculation could fuel heightened market instability and trading frequency. The present market scenario, marked by extreme volatility and considerable buying and selling, might in part be influenced by the forthcoming Bitcoin halving.
This week, Markus Thielen, the CEO of 10x Research, forecasted that both the crypto and stock markets could face additional drops as a result of the ongoing and unforeseen inflationary pressures.
Thielen explained that one sign of an upcoming decline could be the bond market’s actions. Currently, the bond market forecasts fewer than three rate reductions and 10-year Treasury Yields surpassing 4.5%, leading Thielen to believe that the financial sector might have reached a pivotal moment for risk assets.
Based on recent trends, it seems that investors may be growing more wary of riskier assets and could be revising their investment plans due to the evolving market conditions.
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2024-04-19 12:15