Crypto Liquidation Surges: Bitcoin’s Dip from 2023 High Wipes Out Hundreds of Millions
In the past 24 hours, the cryptocurrency market experienced a significant wave of liquidations, resulting in the loss of value of crypto assets amounting to hundreds of millions of dollars. The sudden drop in Bitcoin (BTC) from its 2023 peak was the primary catalyst for this event.
Coinglass, a renowned market intelligence firm, recently released data revealing that approximately $140 million worth of digital assets were liquidated across prominent crypto exchange platforms within the past day. This occurred as Bitcoin retraced from its $31,000 price level.
As of now, Bitcoin is trading at $30,305, representing a slight increase for the day but a 3.8% decrease from its 2023 high of $31,479.
The data also highlights that Binance, the world’s largest crypto exchange platform, witnessed the expulsion of approximately $48 million worth of derivatives contracts. Most of these contracts were long positions. Similarly, Seychelles-based crypto exchange OKX saw over $46 million worth of both long and short positions being liquidated. Bybit and Huobi experienced liquidations of $25 million and $8 million, respectively.
Moreover, Coinglass’s crypto analytics revealed that the most liquidated contracts during the past 24 hours involved various digital assets, including Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH), Solana (SOL), XRP, Polygon (MATIC), Dogecoin (DOGE), and Pepe (PEPE).
The decline in BTC’s price and the surge in liquidation activity coincide with the release of the ADP report, which surpassed expectations by a large margin. This unexpected positive report on US employment levels has raised concerns in the market about potential interest rate hikes.
According to John Lynch, the chief investment officer at Comerica Wealth Management, in an interview with CNBC, “The market clearly would have preferred an in-line number. But because it was more than double expectations, that really ratchets up the fear factor that the Fed would have to be more aggressive.”
The market turbulence caused by Bitcoin’s retreat and the impact of economic reports indicate a challenging and uncertain period for the cryptocurrency market, leaving investors and traders on high alert.
Read Also: Shiba Inu Emerges as a Strong Dogecoin Competitor, Overcomes Price Hurdles
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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