According to Coinglass statistics, cryptocurrency traders lost $1 billion in liquidations during the past 24 hours as a result of one of the worst sell-offs of the year in the digital asset markets and a two-month low in the price of bitcoin.After falling as low as $25,000 earlier in the day, Bitcoin, the biggest and first cryptocurrency, fell 7% to approximately $26,900, its lowest level since June.
According to CoinGlass, traders who had long positions—bet that prices would rise—lost over $821 million during the stampede for the door.The biggest losers were traders of bitcoin (BTC), who endured protracted liquidations totaling $472 million, followed by dealers of ether (ETH), who lost $302 million.
According to Coinalyze data, which was collected around the time the price of the most popular cryptocurrency fell to $17,000, this was the highest amount of BTC liquidations for a single day since June 2022.The liquidations took place after cryptocurrency values plunged through the floor on Thursday in U.S. time, turning this month’s gradual decline into a massacre amid uncertainties in the financial markets caused by the devaluation of other currencies, concerns about the Chinese economy, and soaring bond yields.Major cryptocurrencies like BTC and ETH had losses close to double digits, dropping to levels not seen since early summer.
Liquidations occur when an exchange shuts a leveraged trading position as a result of a partial or complete loss of the trader’s initial capital, or “margin” – if the trader is unable to meet the margin requirements or does not have sufficient cash to keep the trade open.A cascade of liquidations may begin when asset prices plummet, escalating losses and price decreases.