Crypto market sees over $1.1 billion liquidated in 24 hours

Massive Liquidations Decimate Crypto Market, Over $1 Billion Lost

In a span of 24 hours, the crypto market witnessed a staggering $1.1 billion wiped out in trader positions. Both long and short traders incurred substantial losses, with long positions accounting for the majority. A colossal $1.03 billion evaporated from long positions, while short positions lost $155.02 million.

Widespread Liquidations Across Assets

The liquidation frenzy extended beyond specific assets. Bitcoin and Ethereum bore the brunt of the impact, but altcoins also succumbed to the carnage. Leveraged traders faced a severe reckoning as swift market fluctuations triggered margin calls and automatic sell-offs.

Bitcoin and Ethereum Liquidation Dominance

Bitcoin led the liquidation spree with $245.22 million lost, closely followed by Ethereum with $223.09 million. Dogecoin had $58.82 million liquidated, XRP saw $48.24 million vanish, and Solana was not spared with $39.56 million wiped out.

The most significant single liquidation involved an ETH/USDT position on Binance valued at $15.80 million. Binance emerged as the busiest platform for liquidations, handling $199.95 million, of which $183.85 million originated from long positions, while shorts accounted for $16.10 million.

Bybit followed suit with $84.92 million in liquidations, $75.06 million of which were long positions. This data underscores the prevalent bullish sentiment among traders on these platforms, which was abruptly extinguished by swift market corrections.

Timeframe Breakdown

The last 24 hours witnessed a surge of liquidations, accounting for $1.19 billion. Within 12 hours, $516.17 million had been eradicated. In a further breakdown, $437.28 million disappeared in just four hours, and $279.90 million vanished in a single hour.

Fed's Influence on Market Downfall

The US Federal Reserve's recent announcement played a pivotal role in this market bloodbath. Chairman Jerome Powell's statement indicating a likelihood of minimal, if any, rate cuts next year sent shockwaves through the market, causing Bitcoin to plunge from $100,000 to below that level within hours.

Bitcoin's Long-Term Holders Drive Sell-Off

Bitcoin's long-term holders, typically holding their assets for extended periods, have also contributed to the sell-off. Glassnode data reveals that their supply has dropped to $13.31 billion, from $14.23 billion two months earlier. This occurred alongside Bitcoin's price surge from $58,000 to over $100,000.

Short-Term Holders Step In

Short-term holders have stepped into the fray, absorbing selling pressure from long-term investors. Their buying activity has kept Bitcoin's price above the six-figure mark, albeit with some traders realizing profits. The delicate balance between these opposing forces will be crucial in shaping Bitcoin's price trajectory.