Liquidations cross $280 million after Bitcoin price falls below $25,000

Bitcoin price had briefly touched $25,000 in the last day, but the rejection at this point had sent the digital asset down. It had inevitably ended in the high $23,000s before a recovery was staged. But by then the damage had already been done to many traders. Liquidations had increased as quickly as the downtrend was rapid, sending nearly 100,000 traders into losing territory.

$280 million when Bitcoin falls

In the last 24 hours, liquidation volumes have grown rapidly. When bitcoin fell below $24,000, tens of thousands of traders were at the mercy of the market as their positions were liquidated. Most of these have occurred in the past 12 hours, with liquidations having passed more than $100 million by this time.

More than $280 million in liquidations have been recorded in the last day, with more than 98,000 traders affected. The majority of these traders had been in long positions, no doubt encouraged by the recent rally and anticipation that has grown ahead of the Ethereum merger.

However, the market would once again show its unpredictability when the price of bitcoin failed to hold $25,000. Cryptocurrencies such as bitcoin experienced massive liquidations, reaching $61 million in the last day alone. Long positions accounted for 71.77% of all liquidations, showing how bullish the market had become prior to the market decline.

Ethereum takes the lead

Due to the fact that the market recovery was led by the bullishness surrounding the Ethereum merger, ETH had naturally been the digital asset to take the lead when it comes to mining and reversals. For one of the few times in history, the price of bitcoin and others had followed Ethereum’s lead.

So now it makes sense when the price of Ethereum started to drop that, more volume was seen in the form of liquidations. Most traders had moved into open long positions in Ethereum as bullish sentiment continued to rage.

Ethereum alone had seen $103 million in liquidations in the last 24 hours. This comes out to more than 55,000 ETH liquidated and counting. Surprisingly, the largest single liquidation did not occur in ETH, but in BTC. There was one trade on FTX BTC-PERP with a value of $5.03 million.

Others that have seen large liquidation volumes in the last day include ETC with $12.46 million, SHIB with $11.95 million and SOL with $10.72 million. A total of 98,686 traders had been liquidated at the time of writing.

Featured image from NewsBTC, chart from TradingView.com

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