As the year winds down, bitcoin liquidations continue. This year was filled with bitcoin liquidations exceeding $100 billion. There is not a stopping point even though 2022 approaches. The recent downtrend has meant that long-term traders have to take the brunt. These losses are likely to continue throughout the year, as bitcoin is expected to close the year below $50K.
Bitcoin Liquidations Continue
Coinglass has data on both the 24-hour and 12-hour time scales. It shows that bitcoin liquidations seem to haven’t slowed down. The number of bitcoin liquidations has increased over the last 12 hours and is now at $31 million. This volume for 24 hours is $46M, which shows that there have been more losses in the past two hours than during the entire day.
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It follows the overall trend in 2021, which has seen many long traders lose a lot of money on the stock market. Although there were many bull rallies in the market, long traders could make a lot of money. However, these crashes proved to be too brutal and quick to cause massive liquidations.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Bitcoin short traders have been doing well with the downtrend as bears continue to drag BTC’s price down. Most of the liquidations for digital assets were for long-term traders. Binance, the crypto-exchange that hosts most traders on the market due to its high trading volume, has recorded the highest volume.
Ethereum trades not left out
The effects of market liquidity aren’t just affecting Bitcoin traders. This is also affecting Ethereum traders. Also, traders have been able to get rekt both on the 12-hour and 24-hour periods. There are liquidations that reach into the millions.
As with bitcoin, 12-hour liquidations are more effective than 24-hour ones. The total amount of Ethereum liquidations over the past twelve hours has surpassed $21million. On a 24-hour basis, liquidations totaled $38 million.
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The majority of losses are being incurred by long traders once more. Since ETH’s price, moving in tandem with that of bitcoin has continued to decline, these long traders are seeing their positions liquidated and are incurring heavy losses. Binance also records most liquidations at this point.
LUNA traders have also been feeling the heat. Over $2 million has been liquidated in 24 hours. If this market trend continues traders might only begin to see the end of the liquidations.
Featured Image from Time.com. Chart by TradingView.com