Bitcoin recently plummeted to around $25,000 from its previous value, leading to a substantial drop in cryptocurrency values across the board. Traders faced approximately $1 billion in liquidation losses in a 24 hour period. This sell-off also marked one of the most severe downturns for digital assets this year.
Bitcoin witnessed a 7% drop to roughly $26,900, with an earlier dip to nearly $25,000, the lowest value since June. CoinGlass data reveals that about $821 million worth of long positions, which are bets on price increases, were eradicated as traders hurriedly exited their positions. Among these losses, BTC traders bore the brunt, with long liquidations amounting to $472 million, followed by ETH at $302 million.
This represents the highest volume of Bitcoin liquidations on a single day since June 2022, a time when Bitcoin plummeted to $17,000. The trigger for this downturn included concerns about collapsing foreign currencies, apprehensions about the Chinese economy, and surging bond yields to multi-year peaks.
Typically, when an exchange closes a leveraged trading position due to a partial or total loss of the given initial margin, which means that the trader fails to meet the margin requirements or does not have enough funds to keep the trade open, this is referred to as a liquidation. When asset prices fall, the dynamic can set off a chain reaction of liquidations, exacerbating losses and price declines.
Crypto Traders Experience Significant Losses As Market Undergoes Sharp Decline
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
October 17,2024
An Overwhelming Majority Of Asian Private Wealth Is Investing In Crypto
October 17,2024
WLFI Token Raises $5 Million As Technical Issues Persist
October 16,2024
DeLorean Motors May Copy Tesla And Adopt SHIB As Payment Option
October 16,2024
Everything You Need To Know About The New Ripple Stablecoin
October 15,2024
Hyperliquid Announces New HYPE Tokens Ahead Of Mainnet Launch
October 15,2024
New Ethereum Proposal Could Drastically Reduce Validator Threshold
October 14,2024
US DoJ Aims To Boost Market Trust By Targeting Meme Coin Scammers
October 14,2024
Chinese Researchers Breach Cryptographic Algorithms Via Quantum Computing
October 14,2024
Web3 Fundraising Deals - 8th To 14th October 2024
October 13,2024
Bitcoin Touches $63K As Meme Coins Continue To Soar
October 12,2024
Former Crypto CEO On The Run As Authorities Issue Arrest Warrant
October 11,2024