Cryptocurrency traders experienced a staggering $1 billion in liquidations over the past 24 hours, according to CoinGlass data. This comes as digital-asset markets suffered one of their worst sell-offs of the year, with Bitcoin’s price dropping to a two-month low of $26,900. Of the total losses, $821 million were long positions, or traders who bet on prices to rise. Bitcoin (BTC) traders took the brunt of the losses, enduring $472 million of long liquidations, followed by Ether (ETH) with $302 million. This was the largest level of BTC liquidations for a single day since June 2022.
The liquidations occurred as crypto prices plummeted during Thursday afternoon U.S. hours, transforming this month’s slow downtrend into a bloodbath. Major cryptos such as BTC and ETH saw near double-digit losses, falling to their lowest since early summer. Liquidations happen when an exchange closes a leveraged trading position due to a partial or total loss of the trader’s initial money down or margin. When asset prices nosedive, the dynamic can kickstart a cascade of liquidations, exacerbating losses and price declines.
Quotes: Cryptocurrency traders suffered $1 billion of losses in liquidations over the past 24 hours and This was the largest level of BTC liquidations for a single day since June 2022.