The cryptocurrency market is in a state of panic due to a market-wide crash that has rocked Bitcoin and altcoins as the price of Bitcoin continues to fall from support to support, causing tens of thousands of traders to lose their positions, leading to the loss of hundreds of millions of dollars in just a single day.
Cryptocurrency market liquidation exceeds $290 million
Bitcoin prices have crashed over the past 24 hours, eventually dropping below $57,000 before recovering, but the damage has already been done and long traders are bearing the brunt of the losses over the past day.
According to data from Coinglass, $292.8 million worth of cryptocurrency was liquidated in the past day. A total of 105,458 traders were liquidated, of which 88.61% were long traders. The majority of these liquidations occurred in the past 12 hours after Bitcoin fell from $61,000 to $57,000, resulting in $204.97 million being liquidated.
Bitcoin alone saw $91.7 million liquidated, followed by the second largest cryptocurrency, Ethereum, with $69.86 million liquidated. The largest liquidation event occurred on the Huobi crypto exchange on the BTC-USD pair, with a single liquidation call resulting in a loss of $10.49 million.
Binance, the world's largest crypto exchange, recorded liquidation of $122.67 million, followed by OKX Exchange with $89.83 million and Huobi Exchange with $42.07 million. In fourth and fifth place were Bybit and CoinEx with $23.04 million and $9.42 million, respectively.
Bitcoin recovery could change liquidation trajectory
As mentioned above, liquidation in the cryptocurrency market has been primarily focused on long trades as Bitcoin prices continue to plummet, but with the price showing signs of recovery, exceeding $57,900 at the time of writing, investors with short positions are beginning to feel the pressure.
According to data from Coinglass, long liquidations have fallen from 88.61% in the past 24 hours to 56.48% in the past hour.Short traders, fuelled by the bearish wave, could see further sell-off from here if prices continue to rise.
Despite the fading positive sentiment, Bitcoin's daily trading volume surged by 50% to $37.59 billion. For now, it appears bulls have formed support and the key is to hold on if the recovery continues from here.
Bitcoin is currently trading at $57,909, down 3.87% from the previous day, 5.23% on the weekly chart, and 15.95% on the monthly chart.
Featured image created by Dall.E, chart taken from Tradingview.com
