After the market crash, cryptocurrency liquidations increased. With the market crash, there were more liquidations. Short-term calls also suffered. The market is slowly recovering and liquidations are now starting to settle.
Releasing Crypto Market Liquidations
While liquidations are not able to stop entirely, they have begun slowing down. The liquidation volume dropped from more than $1 billion at the peak of the crash, and is slowly returning to the normal level. The liquidations in the past 24 hour have shown this clearly with liquidations at $150 million. The market has shown a bias towards long traders since Monday’s dramatic plunge.
Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000| Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000
Bitcoin and Ethereum are the top digital assets with the highest number of liquidations during this period, as expected. Bitcoin has seen more than $43,000,000 in liquidations, and Ethereum liquidations are worth more than 24K Ethereum. Ethereum liquidations have totaled more than $29 Million in liquidations over the 24 hour period.
Total market capital below $1 trillion | Crypto Total Market Cap on TradingView.com
This period saw the liquidation of more than 74,000 traders, with 69.73% being long trades. Highest liquidations were seen on Binance, Okex and Binance. However, Bitmex on the XBTUSD saw the greatest single liquidation with the trade amounting to $2.48million.
The Market takes a Nosedive
As expected, most gains made by the cryptocurrency market last week have been lost. It was due to the rapid decline in price that occurred after the return of investor faith, which indicated that this recovery was a bull trap.
Similar Reading: Binance CEO Says Bitcoin Will Not Reach All-Time High for Two More Years| Bitcoin May Not Reclaim All-Time High For Another Two Years, Binance CEO
Bitcoin’s value had dropped sharply to below $21,000 after it had been trending for the greater part of the week. Bitcoin was now back at $20,000 level. The dip resulted in more than $500 lost from bitcoin’s value in a matter of minutes.
This has led to liquidations on various exchanges, bringing the total liquidated value of $156 million. On the hour chart, Bitcoin liquidations are increasing. $28 million was recorded during the same time frame. That brings it to 1,360 BTC.
Featured Image from Business Today. Chart from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…