Bitcoin and Ethereum Price Collapse Leads to Liquidations Over $300 Million!

  • Today, Bitcoin experienced a drop from $43,800 to $40,272 during the early Asian session, indicating an almost 8% decrease.
  • This decline led to significant liquidations of long positions on centralized exchanges. Volatility caused more than $94 million in liquidations in Bitcoin positions.
  • Will Sheehan, the founder of data provider Parsec, mentioned an increase of about $2 million in DeFi liquidations.

The sudden crash in Bitcoin and Ethereum prices affected the entire crypto market: Liquidations reached gigantic sizes!

Sudden Plunge in Bitcoin and Ethereum Prices

Bitcoin-Ethereum

Today, Bitcoin experienced a drop from $43,800 to $40,272 during the early Asian session, indicating an almost 8% decrease. Ether also fell nearly 5% to $2,161, and most altcoins showed a similar trend.

This decline led to significant liquidations of long positions on centralized exchanges. Volatility caused more than $94 million in liquidations in Bitcoin positions, with the majority ($85 million) coming from long positions. According to CoinGlass data, the overall crypto market recorded $360 million in liquidations, contributing to the liquidation of $320 million in long positions across various exchanges.

In derivative markets, liquidations occur when a trader’s position is forcibly closed due to insufficient funds to cover losses. This situation arises when market movements are unfavorable to the trader’s position, leading to the exhaustion of initial margins or collateral.

Will Sheehan, the founder of data provider Parsec, mentioned an increase of about $2 million in DeFi liquidations, describing this situation as the first time in over a year that “retail has been brought into the long-term crypto bull run.”

How are funding rates?

In derivative markets, according to CoinGlass data, funding rates for Bitcoin, Ether, and other cryptocurrencies fell below +0.01% today— a decrease from the +0.1% seen in recent weeks—indicating a reduced demand for leveraged long positions.

Analysts are optimistic about the future of cryptocurrencies as we head towards 2024. Experts at investment management firm VanEck predict that Bitcoin will reach a new all-time high in the fourth quarter of next year. This optimism is fueled by expectations for the upcoming Bitcoin halving event and the possible launch of a spot Bitcoin exchange-traded fund.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Top Losers on Binance: TROY Sees a 25.01% Decline in 24 Hours

As of November 23rd, recent market data from Binance...

LM Funding Reports Increased BTC Mining Output in October 2024: A Step Towards Financial Growth

COINOTAG has reported that on November 23, LM Funding,...

Bitcoin’s Bullish Rebound Begins: VanEck’s Analysis Reveals Key Indicators for Future Growth

In a recent analysis by asset management powerhouse VanEck,...

Binance Achieves $8.73 Billion Net Inflow, Boosting Total Crypto Assets to $154.9 Billion

According to recent data from DeFiLlama, Binance experienced a...

ETH Investor Earns 1533 ETH Profit After Strategic WBTC Swap: Insights from On-Chain Data

On November 23rd, COINOTAG News reported a significant transaction...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img