Crypto market sees $260M in liquidations as Bitcoin passes $30k.

Just a few hours after Bitcoin crossed the $30,000 mark, the global crypto market experienced significant liquidations. Over the past 24 hours, more than $260 million has left the crypto market, highlighting the high-risk and volatile nature of digital currency trading.

Notably, traders who are currently at a loss despite the uptrend in the market are those who took short positions hoping for the crypto market to continue its downward trend.

Sweeping Liquidation Wave Hits Crypto Traders

According to data from Coinglass, an estimated 65,392 traders and counting had their positions liquidated in the past 24 hours, resulting in cumulative losses of over $269 million. This event underscores the risk in crypto trading, particularly during significant market shifts, such as Bitcoin’s recent surge beyond the $30,000 threshold.

Binance, a leading player in the crypto exchange industry, accounted for the largest portion of these liquidations, totaling $84.79 million. Other exchanges, including OKX with $69.53 million, Bybit with $37.9 million, and Huobi with $32.35 million, also recorded significant liquidations.

While smaller exchanges also experienced liquidations, their impact on the overall market was less severe. The liquidation wave mainly impacted traders holding short positions, reflecting the majority’s expectation of a price decrease.

These traders suffered the most from the liquidations, accounting for around 80.9% ($218.21 million). At the same time, traders holding long positions were not immune to the market’s volatility, with liquidations amounting to nearly 20% of the total ($51.50 million).

This underscores that fluctuations in the crypto market can be equally detrimental to both ends of the trading spectrum. A stark example of this explosive situation came from Bitmex, where a single trader recorded a massive loss of $9.30 million in an XBTUSD swap, making it the largest single liquidation in this episode.

Bitcoin Latest Price Action

Over the past 24 hours, Bitcoin has made significant moves. The asset briefly reached a notable high of above $30,000 a few minutes ago from writing. This surge comes after the asset’s previous downturn amid intensified regulatory scrutiny on the largest crypto exchanges, which saw its price trade below $25,000.

Bitcoin is currently trading at $29,991 after briefly climbing above $30,000. Over the past 7 days, Bitcoin’s total market capitalization has seen a boost of 15.7%, amounting to an additional $80 billion. The market capitalization of Bitcoin currently hovers at $583.6 billion, an increase from last Wednesday’s $503 billion.

Bitcoin’s daily trading volume has also surged from a low of around $7 billion last week to as high as above $30 billion in the past 24 hours. This update suggests an increased trading activity of Bitcoin within a span of 7 days.

Furthermore, Bitcoin liquidations formed a significant portion of this turbulence, accounting for $115.76 million. Following Bitcoin, Ethereum (ETH) traders witnessed liquidations of $51.94 million, reaffirming the ripple effect across different cryptocurrencies.

Featured image from iStock, Chart from TradingView