The cryptocurrency market has been bouncing back and forth in the past few days. More than 124,003 traders have seen more than 421 million dollars filtered In a 24-hour period where prices have fallen significantly yesterday and today.
The crypto market is dropping to new lows that we haven’t seen since November. With a total loss of $421 million, Bitcoin (BTC) accounted for the most losses, followed by Ethereum (ETH).
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Cryptocurrency Traders Filter
Most of the liquidations took place on Binance, FTX, and Okex. As a result, Bitcoin traders lost 4,340 BTC worth $144 million, Ethereum traders lost 50,180 ETH worth $121.81 million, and LUNA traders lost 264,350 coins worth $15.99 million.
Other major cryptocurrencies showed relatively smaller losses. Futures tracking TRX saw $8 million in losses, followed by Solana SOL with $7.54 million. DOGE showed Dogecoin $7.24 million while Stepn GMT lost $6.93 million. Among other altcoins, Ripple (XRP) futures saw a loss of $6.1 million, followed by Appcoin (APE) at $5.95 million.
The 12-hour liquidation figures show $286 million in losses from all major cryptocurrencies.
to me Coinglass dataIn this case, traders lost 77.5% ($327 million) of the total liquidation amount they bet on long positions. There were $129 million liquidations on Okex, while traders lost $107 million on FTX. Binance traders are in third place, losing $94 million in liquidation.
In the event that no one knows what a future “liquidation” is, it is best to take a quick look at how margin trading works.
When the stock exchange closes out a leveraged position, this is called liquidation. This happens when there is a partial or total loss of the trader’s initial margin. Liquidations mostly occur in futures trading. Because that only tracks asset prices, unlike spot trading, where traders own the actual assets.
Crypto market correlation
If we look at the prices of cryptocurrencies as of November 2021, they have fallen a lot. The total value of all cryptocurrencies decreased by almost 50%. In November 2021, the total cryptocurrency market capitalization reached $2.79 trillion while it now stands at $1.49 trillion according to TradingView. The market capitalization of Bitcoin in November 2021 exceeded $1.26 trillion, which is about 45% of the total market capitalization.
Related reading | Bitcoin carnage continues as Bitcoin breaks down to $34,000
The reason for the sell-off is not clear, but it happens during a downturn that affects all markets, including cryptocurrencies.
This indicates that the crypto market is becoming more like traditional markets. The S&P 500 and other big tech companies have been more crypto-related in the past year. This is why the cryptocurrency market is more connected to the global economy.
Featured image from Pixabay and the chart from tradingview.com