Crypto liquidation reaches $170 million, BTC near $30k and ETH $2K
In the last 24 hours, a noticeable decline in the crypto market caused $169M liquidation for traders. Recent analysis reveals that around 46,931 traders were liquidated, and most happened on OKX worth around $3.04 million. Total crypto liquidation losses amounted to 59% in short and long positions.
A little fall in the crypto market and its effects
Bitcoin (BTC) was trading at $30,336.84, down 0.29% at press time. Market capitalization fell 0.28% to $586 billion, and trading volume fell 42.54% to $11.3 billion. Still ranked number 1, it has a market dominance of 46.12%. This recent price drop triggered a liquidation of around $80 million.
After the Ethereum Shapella Upgrade, ETH was up by around 7.19%, but now it is trading at $2,097.79 with a small increase of 0.34%; its value against Bitcoin rose 0.67% to 0.06918BTC, which was up around 5.19% after the upgrade. Market capitalization rose slightly by 0.02% to $251 billion, but trading volume fell 42.63% to $7.45 billion. Due to this pace, Ethereum traders lost $23.33 million.
Arbitrum (ARB), in comparison, traded at $1.64 with a 1.35% drop, its value against Bitcoin fell 1.07% to 0.00005385BTC, its market cap suffered by 1.21% to $2.08 billion, and trading volume fell by 42.97% to $1.4 billion. The decline led to a loss of around $8.3 million. A similar trend continued in Dogecoin (DOGE), Solana (SOL) and Litecoin (LTC)
Major exchanges such as Bitfinex, OKX and ByBit apparently contributed to about 90% of these crypto liquidations. Detailed studies show that most traders in Bitfinex had short positions while they had long positions in other exchanges. Ironically, despite traders experiencing liquidations, the respective assets are still trading reasonably well.
2023, a relatively good year for crypto so far
After a harsh crypto winter and several bankruptcies, FTX collapsed, and more last year, many believe it was among the worst years the market has witnessed. With crypto companies facing a series of hacks almost every month in 2022, a constant price decline and a significant loss in trading volume led to overall market losses reaching around $1.8 trillion.
However, from day one of trading in 2023, the crypto market traded well, with Bitcoin increasing around 84% and Ethereum increasing almost 75%. Such gains made the environment positive, indicating a regained user confidence lost during 2022.
Although the market appears to be recovering from a steep decline, regulators are still cracking down. A subsequent fall of major crypto-friendly banks, such as Silvergate and Silicon Valley Bank, caused a dent in the industry’s work. The SEC issued a Wells Notice to Coinbase regarding the sale of unregistered securities, while the infamous case of SEC vs. Ripple has been going on since December 2020, and the verdict could come this year.
The US presidential candidate openly advocated Bitcoin as a tool that could save us from economic uncertainty and spoke against the proposed federal CBDC, FedNow, and how it could challenge citizens’ financial freedom. Senator Elizabeth Warren tried to lead the anti-crypto army for her re-election campaign.
From a bird’s eye view, crypto is emerging from a bad phase, and lawmakers need to work closely to develop regulatory standards that benefit everyone.
Disclaimer
The views and opinions expressed by the author, or any person mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
