Liquidations in the crypto market reach $830 million, when will the bleeding stop?
Crypto liquidations across the market have increased over the past 24 hours. Digital assets in the space suffered declines over the past 24 hours, which has seen hundreds of millions of dollars wiped from traders. These liquidations span the entire crypto market with hundreds of thousands of traders caught in one of the worst liquidation events of 2022.
$830 million shaved off the crypto market
Within 24 hours, more than $830 million in liquidations have been recorded across the entire crypto market. It marks the second largest liquidation event recorded so far in 2022, coming in just slightly below October’s liquidation figures.
Naturally, given that the price of digital assets across the board has been in decline, long traders have suffered the worst of the liquidations. Over 70% of the liquidation figures have come from long traders. More than 33% of these volumes were recorded on the Binance crypto exchange with FTX close behind at 21.77%.
Liquidations cross $830 million | Source: Coinglass
A total of 392,043 traders have been liquidated during the one-day period with the largest single liquidation order on the Binance exchange. The trade was placed on the BTCUSDT pair on the exchange and was worth $6.70 million.
Total market cap falls to $832 billion | Source: Crypto Total Market Cap on TradingView.com
Loss leaders in 24 hours
In any liquidation event, digital assets such as Bitcoin and Ethereum are always leading the pack. However, the decline of the FTX crypto exchange has led to some strong contenders during this time. The crypto exchange that recorded the second largest liquidation volumes saw its original token FTT suffer significant losses.
During the 24-hour period, 5.75 million FTT tokens worth $26.6 million have been liquidated. This makes it the token with the fourth largest liquidation volume, coming in just behind Solana (SOL) which FTX also had exposure to. 3.26 million SOL worth $53.66 million had already been liquidated at the time of this publication.
Even with nearly $1 billion in liquidations already, there doesn’t seem to be an end to the carnage just yet. Bitcoin has once again fallen to the $17,000 level, and remains above the previous cycle low of $17,600, but without support. Any wild moves similar to what was experienced on Tuesday could easily bring the liquidation numbers up to $1 billion.
Featured image from Bitcoinist, chart from TradingView.com
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