Crypto Traders Lost $421 Million In Liquidations For The Past 24 Hours
09 Mai 2022 - 6:00PM
NEWSBTC
The crypto market has been bouncing back and forth in the past few
days. Over 124,003 traders saw more than $421 million liquidated in
a 24-hour period as prices tumbled wildly throughout yesterday and
today. The crypto market is falling to new lows not seen since
November. With a total loss of $421 million, Bitcoin (BTC)
accounted for most of the losses, followed closely by Ethereum
(ETH). Related Reading | TA: Ethereum Bears Aim Big After
Recent Breakdown Below $2.5K Crypto Traders Liquidations Figure
Most of these liquidations occurred on Binance, FTX, and Okex. As a
result, Bitcoin traders lost 4,340 BTC worth $144 million, Ethereum
traders lost 50,180 ETH worth $121.81 million, and LUNA traders
lost 264,350 coins worth $15.99 million. Other major
cryptocurrencies showed relatively lower losses. Futures tracking
Tron’s TRX saw $8 million in losses, followed by Solana’s SOL at
$7.54 million. Dogecoin’s DOGE showed $7.24 million while Stepn’s
GMT losses reached $6.93 million. Among other alternative
currencies, Ripple (XRP) futures saw a loss of $6.1 million,
followed by Appcoin (APE) at $5.95 million. The 12 hours of
liquidation figures show the losses of $286 million from all major
cryptocurrencies. According to Coinglass data, traders lost 77.5%
($327 million) of the total liquidation amount betting on longs.
$129 million liquidations happened on Okex, while traders on FTX
lost $107 million. Binance traders are on 3rd, losing $94 million
in liquidations. In case anyone isn’t aware of what futures
“liquidations” are, it’s best to take a brief look at the workings
of margin trading. When an exchange closes a leveraged position,
it’s called a liquidation. This happens when there is a partial or
total loss of the trader’s initial margin. Liquidations happen
mostly in futures trading. Because that only tracks asset prices,
unlike spot trading, where traders own the actual assets.
Crypto Market Correlation If we look at cryptocurrency prices from
November 2021, they have gone down a lot. The total value of all
cryptocurrencies has dropped by almost 50%. In November 2021, the
total crypto market capital reached $2.79 trillion while now it is
at $1.49 trillion according to Tradingview. Bitcoin market
cap in November 2021 crossed $1.26 trillion, which is about 45% of
the total market cap. Related Reading | Bitcoin Carnage Continues
As BTC Disintegrates To $34K It is unclear what caused the
sell-off, but it is happening during a downturn that is affecting
all markets, including cryptocurrencies. This suggests that the
crypto market is becoming more like traditional markets. The
S&P 500 and other big tech firms have been more strongly
related to crypto in the past year. That is why the crypto market
is more tightly connected to the global economy. Featured image
from Pixabay and the chart from tradingview.com
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