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The cryptocurrency market experienced a dramatic weekend event, with Bitcoin at the forefront, seeing significant liquidations totaling nearly $500 million.
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This sharp market reversal comes after Bitcoin’s recent surge towards an all-time high, highlighting the volatility inherent in the crypto space.
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According to COINOTAG, “The unprecedented scale of liquidations serves as a stark reminder of the risks that traders face in a highly leveraged environment.”
This article discusses the recent massive crypto liquidation event, focusing on Bitcoin’s volatility, market trends, and the implications for investors.
Crypto market meltdown: A deep dive into liquidations
Notably, COINOTAG’s in-depth analysis of Coinglass data revealed that 188,666 traders faced liquidations over the past 24 hours, with total losses amounting to $495.74 million.
Furthermore, long positions bore the brunt of the losses, accounting for $366.72 million, while short positions contributed $128.99 million to the overall figure.
The most significant single liquidation order took place on Binance, involving a BTC/USDT trade that resulted in a staggering $13.4 million loss.
Binance also dominated the leaderboard in total liquidations, with a massive $215.90 million cleared. Other major exchanges followed, including OKX with $119.57 million, Bybit at $115.61 million, and HTX, which recorded liquidations worth $27.84 million.
Which coins were impacted the most?
Meanwhile, the king coin accounted for the highest liquidations among cryptocurrencies, with $79.06 million wiped out, followed by Ethereum [ETH] at $43.57 million.
Source: Coinglass
Dogecoin [DOGE], Ripple [XRP], and Sandbox [SAND] rounded out the top five, with $32.3 million, $30.6 million, and $24.97 million, respectively.
Interestingly, SAND and Bonk [BONK] saw more short liquidations than longs, bucking the broader trend of long-liquidation dominance.
Crypto market cap dips
With all top 10 coins registering losses, the global cryptocurrency market cap dropped to $3.35 trillion, reflecting a 0.74% decrease over the past 24 hours as per CoinMarketCap.
At press time, BTC was trading at $97,876, marking a 0.43% decline in a day. Over the same period, it generated $53.5 billion in trading volume and maintained a market capitalization of $1.9 trillion.
Among the top 10 cryptocurrencies, DOGE experienced the steepest loss, plunging by 3.50% to trade at $0.422.
These sectors defied market trends
While the broader market faltered, some sectors defied the trend. According to CoinGecko, the Gaming Finance (GameFi) market cap rose to $24.4 billion, marking a 10% increase over the last day.
Similarly, the Decentralized Science (DeSci) market cap grew by 6.3% to $1.22 billion. The Metaverse sector also saw significant growth, with a 14% surge pushing its market cap to $14.6 billion. Meanwhile, Play-to-Earn (P2E) tokens gained traction, with their market cap jumping 17.4% to $14.4 billion.
With volatility at its peak, the crypto community watches with bated breath to see if Bitcoin can reclaim its upward momentum and break past the elusive $100,000 barrier.
Conclusion
In summary, the recent liquidation event underscores the unpredictability of the cryptocurrency market. As Bitcoin and other major cryptocurrencies face headwinds, traders are urged to remain cautious. Understanding market dynamics and recognizing the risks associated with leveraged trading are critical for navigating this volatile landscape.
