Crazy Day for Crypto As Over 642k Traders Liquidated for Nearly $5.5 billion

The culprit of the ongoing bloodbath that saw Bitcoin losing nearly 29% of its value from Sunday ATH above $58,000 and Ethereum going to $1,350 is the leveraged traders.

The good thing is despite the overall cryptocurrency market capitalization losing nearly $400 billion, the prices of cryptocurrencies have fallen to levels seen earlier this month only. However, given that cryptos rallied strongly this month, these huge numbers liquidated extremely long traders.

According to the latest data by Bybt, as of writing, in the last 24 hours, a total of 642,765 traders were liquidated for $5.55 billion. More than $2 billion of them occurred in the last 12 hours.

The largest single liquidation order happened on Huobi-BTC, valued at $20.66 million.

Much like always, Binance is leading the liquidations. The leading spot exchange offers 115x leverage on its bitcoin contracts.

Out of the $5.55 billion liquidated, Binance accounts for 2.53 billion of them, followed by Huobi and OKEx at $1.38 billion and $739.9 million, respectively.

Much like the usual biggest contributors to these liquidations, Bitfinex and Deribit continue to see the least amount of liquidations at $25.7 million and $102.37 million, respectively.

As for the digital assets, while half of it, $2.45 billion, belongs to primarily Bitcoin longs. $1.34 billion Ether was also liquidated, and almost $195 million of XRP leveraged traders.

Just as funding rates on crypto perpetual contracts neutralized following yesterday’s sell-off, today as well, it is keeping between 0.01% and 0.1%.

In the light of these record liquidations, trader Altcoin Psycho recommends other traders to keep their foot off of leverage at least until the Bitcoin options expire this Friday as it is expected to keep the volatility here.

Meanwhile, trader and economist Alex Kruger sees this to be the short-term bottom and the prices across altcoins to be higher within the next 24 to 48 hours.