Over $1 Billion in Crypto Liquidations in 24 Hours Amidst Bitcoin’s Volatility
Crypto News – In a striking 24-hour period, cryptocurrency traders bore the brunt of a whirlwind of market volatility, resulting in liquidations surpassing a staggering $1.04 billion. These tumultuous events, as revealed by CoinGlass data, underscore the inherent volatility of the crypto landscape.
The trajectory of Bitcoin mirrored that of a rollercoaster during this period, plummeting from $27,600 to $25,600, only to swiftly rebound to $26,500 within a matter of hours. This rollercoaster had a disproportionate impact on traders who had taken long positions. Within the total sum of $1.04 billion in positions liquidated, a substantial $836 million represented long positions, while $205 million were shorts.
The epicenter of these liquidation tremors resided on OKX, where an astounding $308 million worth of long positions were liquidated in the past 24 hours on this prominent cryptocurrency exchange. Following closely in the wake of this upheaval was Binance, witnessing the obliteration of $189 million in positions held by bullish investors, according to insights provided by CoinGlass.
The abrupt nosedive in cryptocurrency values witnessed yesterday rippled across the decentralized finance sector, triggering liquidations surpassing $75 million. This marked the apex of liquidation activity for the entire year, as underscored by Parsec’s data analysis, which coincided with Ether’s value descending below the $1600 mark.
Adding to the complexity, the potential ramifications of Ether’s price slipping further, sinking below $1500, hang as a sword of Damocles over the decentralized finance landscape. The collateral at risk of liquidation is poised at an alarming cusp of nearly $270 million, casting a shadow over the entire DeFi ecosystem.
A reminiscent spectacle of immense liquidation within the Ethereum lending market transpired in November 2022, where a staggering sum of close to $100 million faced liquidation, as illuminated by The Block’s Data Dashboard.