The value of cryptocurrencies lost in the past 24 hours as a result of liquidation skyrocketed to more than $1.2 billion, following the extending downtrend in Bitcoin and the cryptocurrency market in general.
Crypto traders lost $1.2B in liquidation
Traders are liquidated when over-leveraged and cannot meet margin call requirements due to insufficient balance. Data from Coinglass revealed that 399,447 cryptocurrency traders were liquidated in the past 24 hours, following the drop in Bitcoin’s price below $27,000, which dragged along other cryptos.
The total losses from the closed positions reached $1.27 billion, which represents about a 135% increase (24%). The single largest crypto liquidation occurred at BitMEX, with the trader losing about $10 million in an XBTUSD position.
Binance recorded the highest liquidation amount at $382.12 million, or 30.44% of all crypto liquidation at publication time. Following Binance is OKX, which had $376.21 million in a liquidated position. Traders on Bybit lost $148.24 million; FTX $141.88 million; Huobi $61.38 million; Bitfinex $56.02 million, and so on.
What’s next for Bitcoin?
Many cryptocurrency investors have been panicking about the recent situation of the market, as the continuous drop of Bitcoin price keeps defying bottom calls, leaving no clue for when the bear market ends.
New data from on-chain analytics company Glassnode shows that Bitcoin has reached its second-lowest point in history based on the realized losses. This entails that many holders sold their BTC holdings at a loss. By this, the market is expected to gain some relief from the downtrend.