Cryptocurrency traders lost a staggering $320 million in liquidations over the past 24 hours, according to data from CoinGlass. This comes after the Securities and Exchange Commission (SEC) sued crypto exchange giant Binance for allegedly violating securities laws, causing crypto prices to plummet.
CoinGlass reported that $289 million of long positions – traders who bet on prices to rise – were liquidated, marking the largest level of long liquidations in at least three months. Tokens cited in the SEC lawsuit, such as Binance’s BNB, Solana’s SOL, and Cardano’s ADA, dropped as much as 10% over the day. Bitcoin (BTC) fell below $26,000 for the first time since mid-March.
The large amount of liquidations suggests that the sudden drop in prices caught most investors off-guard. Altogether, nearly 119,000 crypto traders were liquidated in 24 hours. BTC traders booked most of the losses, almost $119 million, while Ether (ETH) investors suffered $41 million of losses. Binance traders suffered the most losses, at $105 million.
The large amount of liquidations suggest that the sudden drop in prices caught most investors off-guard, said CoinGlass.