As the week comes to a close, there have been some interesting shifts in the price of Bitcoin. The digital asset that was struggling to hold $20,000 has finally come out of this funk and managed to make a rally to the mid-$22,000. This rally naturally led to market liquidations, and over time, these liquidations escalated with the volatility that followed this price recovery.
Over 65,000 Rekt . Merchants
As of Friday morning, data from Coinglass It states that more than 65,000 traders have been liquidated in the last 24 hours. Liquidations soared after bitcoin’s quick recovery past $20,000, and by the end of the day, it had added more than $2,000 to its value. Soon, traders were surprised and millions of dollars were liquidated in short positions.
Related reading | Bitcoin Funding Rise As Price Struggle Continues
In total, there was more than $280 million in liquidation over the past day and it’s still growing. The majority exited to be short trades worth $214.74 million in the past day. However, long-time traders were not spared the $67.35 million attack in the same time period. The reason behind the long liquidations is that the digital asset peaked in the mid $22,000 and has lost about $1,000 since then.
BTC declines to low $21,000 | Source: BTCUSD on TradingView.com
Bitcoin traders naturally bear the brunt of the liquidation. The data shows that the last day saw a loss of 6,320 BTC. This translates to $135.69 million, with the largest single liquidation event on the BTC-USD pair totaling $3.86 million on the Huobi crypto exchange.
Altcoins Follow Bitcoin’s Lead
Altcoins have kept a close watch on Bitcoin when it comes to liquidation trends. Altcoins like Ethereum have seen tens of millions of dollars liquidated in the past day. The ETH numbers reached a total of 69,110 ETH, with a value of $84.15 million.
Related reading | Altcoins Take the Lead While Bitcoin Struggles to Hold Over $20,000
Others who have seen major liquidations include Solana (SOL) that has been scattering the NFT space recently. The Ethereum competitor saw a total of $4.14 million liquidated to 111,970 SOL.
Other companies such as GMT, AVAX and CRV scored more than $3 million. While MATIC, XRP, and SAND saw liquidations of $2.85 million, $2.45 million, and $2.17 million, respectively.
About half of the liquidations were recorded in the last 24 hours alone, with a value of $137.96 in total liquidation. Short positions continue to make up a larger portion of the liquidations but with the bitcoin price rallying in the current downturn, the long liquidations are on the rise.
Featured image from MARCA, charts from TradingView.com
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