It is no time for excitement in the crypto industry as thousands of traders find their assets liquidated amid a widespread market correction that has enveloped the sector as other markets close the week in the red zone.
According to data from the crypto trading and analytics platform, Coinglass, on May 5, over $407.60 million worth of digital assets belonging to traders were wiped over in 24 hours.
Coinglass further revealed that among the losses, over $340.30 million worth of huge crypto portfolios belonging to long-term traders were also wiped out, and those who had staked in the continuous drop in the value of the crypto market also felt the hit of the storm.
Additionally, the high volatility also led to the loss of $67.3 million in short-term holdings, where every single asset was liquidated simultaneously.
How Do the Big Players Fare?
As the tumble continues in the crypto market, some of the biggest hits regarding the current liquidation are Bitcoin and Ethereum. The liquidation has been intense, with Bitcoin traders having the worst impact from Thursday to Friday.
Over 2,000 BTC tokens worth $72.7 million are reported to have been liquidated over a 24-hour time frame. Ethereum followed with $39.53 million.
It is worth noting that even the newly created altcoins that have enjoyed relative success in the market were also not spared by the ravaging market correction as both GMT and APE tokens also experienced huge liquidation reported to be in the tune of $7.36 million and $5.27 million for each of the altcoins.
Moreover, the market correction has been unprecedented considering the wide impact it has on the majority of the top-performing assets and the market’s future price action, which has been altered for the coming trading sessions.
According to the on-chain analytics firm, Santiment, the latest event is considered the biggest setback for BTC over the past year, despite the relative gains the flagship coin has made over the past couple of days.
The analytic firm further affirmed that this is the third-biggest capitulation that Bitcoin has faced in more than a year, owing to the metrics that show the ratio of the on-chain transactions carried out in a period of loss.
Meanwhile, the last reported time that the value of the BTC was observed to be negative was between February 16 and 22, when the prices in the market spiked by 20% for nine consecutive days.
Despite the crypto market storm, Santiment revealed that Bitcoin had witnessed a significant level of on-chain activity when the dust was still settling down on the entire market. A record 1.17 million active addresses were busy on the Bitcoin network the previous day, representing the highest number of transactions since December 2021.
Bitcoin is currently at $36,074, which is still below the previous weekday high of $39,874 as it remains down by 9.6%. A further price surge may likely occur once the market can recover fully.
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