Key Points
- Approximately $553 million worth of cryptocurrencies were liquidated in one day as Bitcoin’s price fell to $92k.
- Bitcoin and Ethereum were the largest contributors to these liquidations, impacting around 169,879 crypto traders, predominantly from the Binance exchange.
A significant decline in Bitcoin’s value triggered a wave of cryptocurrency liquidations. On one particular day, traders observed roughly half a billion dollars’ worth of crypto assets being liquidated.
Details of the Liquidation
Data from Coinglass revealed that in a single day of trading, about $553 million in cryptocurrencies were liquidated. This was largely due to long-position traders liquidating their assets worth $413 million as Bitcoin’s price fell to $92k, a decrease of nearly 5% within a day.
In the preceding 12 and 4 hours, long positions saw significant liquidations, with $344 million and $140 million being liquidated, respectively. Short positions also saw a surge in liquidations, with $138 million being liquidated over the past day.
Bitcoin and Ethereum Take the Lead
Bitcoin and Ethereum were the main contributors to these liquidations. At the time of reporting, Bitcoin had recorded $24 million in both long and short positions, while Ethereum recorded $11 million in long positions and $3 million in short positions.
Approximately 169,879 crypto traders were affected by these liquidations. The majority of these traders were from the Binance exchange, with $4.67 million in BTC/USDT pair liquidations.
The crypto market’s total capitalization also fell by nearly 3% to $3.23 trillion, and the trading volume was around $240 billion.
Continued Crypto Liquidations
The market capitalizations of smaller altcoins were significantly impacted by these liquidations, with about $100 million being lost in the market. On November 24th alone, a total of $494 million was liquidated.
This market-wide correction is seen as a normal response after Bitcoin’s rally in the previous month. As per CoinMarketCap data, Bitcoin still holds a market dominance of 57.4%. The crypto fear-greed index showed 82 points, indicating a highly greedy market position.
This wave of momentum could potentially trigger further bullish trends as macro-economic conditions in the United States point towards a promising future for cryptocurrencies. This could also result in positive market sentiment following a drop in Bitcoin’s dominance and impact the rally of altcoins.