Over 75,000 Traders Hit by Massive Liquidations as Bitcoin Drops to $67,000

As a researcher with a background in finance and experience in cryptocurrency markets, I find the recent volatility in the crypto market to be a fascinating yet concerning development. The sharp decline in Bitcoin’s price below its critical support level has led to significant liquidations across various exchanges, with long traders taking the brunt of the damage.

This week, the cryptocurrency market has seen considerable fluctuations, as bullish forces have struggled to keep the upper hand in the face of intensifying selling efforts. Consequently, Bitcoin (BTC) has dipped beneath a crucial support threshold, prompting concerns among analysts who fear this development could negatively influence the market’s progression.

As a researcher studying the cryptocurrency market, I’ve observed a significant price drop in Bitcoin on Thursday, causing it to plummet down to $67,000. This abrupt decline resulted in a massive wave of liquidations, with around 76,000 traders being forced out of their positions. The collective loss from these liquidations amounted to approximately $159 million within the past 24 hours.

The majority of these liquidations were linked to long positions, totaling approximately $125 million, as the market experienced an unexpected drop, catching investors off guard who had predicted Bitcoin’s price would rise instead.

Short Traders Also Affected

As a crypto investor, I’ve noticed that while long traders have taken the brunt of the recent market downturn, short traders haven’t entirely escaped unscathed. Based on CoinGlass data, approximately $34 million worth of short positions were liquidated when Bitcoin dipped below $68,000 once more.

Centralized exchanges saw a collective $159 million in losses due to liquidations. Binance, the globally prominent crypto exchange, experienced approximately 48% of this total amount in liquidation events.

Over the last day, about $78 million disappeared from the company’s platform, which is now under Richard Teng’s leadership. Notably, a significant withdrawal request worth nearly $2.69 million was processed on Binance.

Among other exchanges, OKX accounted for approximately 32% of the total liquidations on the market, amounting to $51.68 million in losses.

Several other trading platforms including Bybit, now known as HTX following a rebrand, and CoinEx played a substantial role in the $159 million worth of crypto positions that were liquidated. According to CoinGlass data, Bybit saw a loss of approximately $13.78 million, while HTX and CoinEx together reported losses exceeding $14 million.

Broader Market Impact

Approximately $22.9 million was lost by traders who held Bitcoin positions on these exchanges, whereas the losses for Ethereum traders reached approximately $26.79 million, exceeding the Bitcoin losses.

Similarly, other cryptocurrencies witnessed a combined liquidation of $30.56 million.

Traders are facing significant losses as Bitcoin’s value continues to decline. In just the last hour, approximately $16.5 million has been erased from the market. The brunt of these losses was shouldered by long traders, who experienced a loss of around $14 million. Meanwhile, short positions incurred around $2.24 million in liquidation during this period.

The overall value of the cryptocurrency market has taken a dip in the past 24 hours, as per CoinMarketCap’s latest report. At present, the crypto market is estimated to be worth approximately $2.5 trillion. Among this total, Bitcoin accounts for roughly $1.33 trillion of the market share.

Read More

2024-05-30 13:30