Massive $120M Crypto Liquidations Hit Long BTC and ETH Positions Hard
Key Insights:
- The crypto market sees $120M in liquidations, with 59,032 traders impacted, mostly from long positions in Bitcoin and Ethereum.
- OKX exchange faces a $4M single liquidation order, highlighting the volatility and risk in the current crypto market.
- In just 12 hours, nearly $56.33M liquidated, with Bitcoin and Ethereum traders experiencing significant losses due to market volatility.
The cryptocurrency market has experienced a substantial shake-up, with recent liquidations amounting to over $120 million. This event has impacted thousands of traders, primarily those with long positions in Bitcoin (BTC) and Ethereum (ETH). CoinGlass’s Liquidation Heatmap provides a detailed overview of these market movements, indicating significant losses in the past 24 hours alone.
Market Recovery and Trader Losses
Despite a recent recovery in the cryptocurrency market, the situation has not been favorable for all traders. Bitcoin and Ethereum, which saw prices drop to $57,000 and $2,800 in April, have rebounded to above $67,000 and $3,100, respectively. This recovery follows a period of geopolitical tension in the Middle East and market corrections linked to the 2024 Bitcoin halving event. However, the uptick has resulted in severe losses for traders who anticipated further gains.
According to CoinGlass’s data, a total of 59,032 traders faced liquidations, incurring financial setbacks. The majority of these losses were borne by those who had taken long positions, expecting a continued rise in the value of BTC and Ether.
OKX Exchange and High-Value Liquidations
The crypto exchange OKX has been particularly affected by recent market volatility. According to CoinGlass’s Liquidation Heatmap, the exchange witnessed the largest single liquidation order in the past 24 hours, amounting to approximately $4 million. Overall, traders on OKX experienced heavy losses, with long positions accounting for about $87.05 million of the total liquidations.
In contrast, short positions also faced significant losses, albeit to a lesser extent, totaling around $28.31 million. Bitcoin traders alone lost $23.15 million, while Ethereum traders saw combined losses of $19.70 million. Additionally, traders invested in Solana (SOL) experienced $8.84 million in liquidations, with other digital assets contributing to a combined loss of $23.24 million.
Hourly Liquidation Analysis
The volatility of the crypto market has led to rapid and extensive liquidations. In the last 12 hours, nearly 60,000 traders have suffered combined losses of $56.33 million. Of this, $14.43 million came from BTC, $7.14 million from Ether, and $10.23 million from various other cryptocurrencies. A particularly volatile period in the past four hours saw liquidations totaling $29.36 million, with long traders losing $10.79 million and short positions accounting for $18.58 million.
Remarkably, within a single hour, up to $13.22 million was wiped out, predominantly from short traders who lost around $12.85 million. This rapid fluctuation underscores the market’s unpredictable nature and the high risks involved in crypto trading.
Historical Context and Ongoing Trends
Crypto liquidations are not a new phenomenon and have been a recurring event in the market. In March, when Bitcoin rebounded from a two-year low to its previous all-time high of $69,000, approximately $1 billion was liquidated within 24 hours. This significant event highlighted the volatility and potential for substantial financial loss within the crypto market.
The trend of substantial liquidations continued as Bitcoin surged to a new high of $73,000 on March 14, before the Bitcoin halving event. This surge resulted in an additional $360 million being wiped out from the market, further demonstrating the unpredictable and often perilous nature of cryptocurrency investments.
The current month has been particularly harsh for traders, with numerous significant liquidations. On May 2, $360 million were liquidated, followed by another major event on May 13, where 71,245 traders faced a combined loss of $130 million. These ongoing occurrences emphasize the need for caution and robust risk management strategies for those participating in the crypto market.
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