Bitcoin price had briefly touched above $25,000 the day before, but the rejection at this point had sent the digital asset spiraling downward. Inevitably, he had finished in the $23,000s before starting a rally. However, by then, the damage had already been done on many merchants. Liquidations surged as fast as the downtrend was fast, sending nearly 100,000 traders into lost territory.
$280 million as Bitcoin falls
In the last 24 hours, settlement volumes have grown rapidly. As bitcoin fell below $24,000, tens of thousands of traders found themselves at the mercy of the market as all of their positions were liquidated. Most of these have occurred in the last 12 hours, where liquidations had exceeded $100 million at this time.
More than $280 million in liquidations have been registered in the last day, where more than 98,000 merchants have been affected. Most of these traders had been long, no doubt buoyed by the recent rally and how old it has been growing before the Ethereum meltdown.
However, the market would show its unpredictability again when the price of bitcoin did not reach $25,000. Cryptocurrencies like bitcoin saw massive sell-offs reaching $61 million in the last day alone. Long positions accounted for 71.77% of all liquidations, showing how bullish the market had become prior to the market pullback.
Ethereum takes the lead
Due to the fact that the market recovery had been led by the optimism surrounding Ethereum Merge, ETH had naturally been the digital asset that took the lead when it came to recovery and reversals. For one of the few times in history, bitcoin price and others had been following Ethereum’s lead.
So now it makes sense when the price of Ethereum started to decline, more volume was seen in terms of liquidations. Most traders had moved to open long Ethereum positions as bullish sentiment increased.
Ethereum alone had seen $103 million in liquidations in the last 24 hours. This comes out to over 55,000 ETH settled and counting. Surprisingly, however, the largest single liquidation occurred not in ETH but in BTC. It was an operation in the FTX BTC-PERP with a value of $5.03 million.
Others that have seen large settlement volumes over the past day include ETC at $12.46 million, SHIB at $11.95 million, and SOL at $10.72 million. A total of 98,686 merchants had been liquidated at the time of this writing.
Featured image from NewsBTC, chart from TradingView.com
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