Big Crash in the Crypto Market: Reasons for Massive Liquidation in 24 Hours

Big Crash in the Crypto Market: Will Massive Liquidations Happen Permanently or Is a Temporary Situation?

The digital currency has been under intense selling pressure over the last 24 hours, which has caused it to drop below the $60,000 support level and to a recent low of about $57,800. Based on Coinglass statistics, there were roughly $77 million worth of long Bitcoin liquidations on centralized exchanges in the last day, out of a total of $92 million in liquidated BTC holdings. About $295 million worth of liquidations occurred on centralized exchanges for the larger cryptocurrency market, with about $259 million worth of long deals.

• On centralized exchanges, the crypto market saw liquidations totaling over $295 million, with long positions totaling about $259 million.
• After falling below $58,000 in the previous day, long liquidations of Bitcoin reached around $77 million.

Ether’s $71 Million Liquidation and Investor Expectations: QCP Capital Report

Significant liquidations also affected Ether, the second-biggest cryptocurrency, with almost $71 million liquidated, of which $62 million was from long holdings. According to researchers, futures traders are bracing for price hikes in the upcoming months, especially for ether, despite a recent decline in the cryptocurrency market. Analysts at QCP Capital said that despite the persistently high tilt in interest towards ether calls with September and December expiries, the options market remains hopeful.

The QCP Capital research on Thursday provided more details on the variables that can lead prices to reverse their present downward trajectory. Two scenarios that could trigger a reversal in a subsequent price correction were presented by the analysts. The QCP Capital analysts also noted that there is a significant topside bias in the liquidity clusters on ether and bitcoin, which could lead to short squeezes.

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