Wednesday’s Federal Open Market Committee meeting and its subsequent results have severely affected the state of the cryptocurrency market. Due to the large price fluctuations during and after the meeting, liquidation volumes rose rapidly across the market. Tens of thousands of traders are caught in the crossfire in what has become the biggest liquidation trend of the past few months.
Cryptocurrency liquidations reach $330 million
The Federal Reserve announced on Wednesday that it raised interest rates by another 0.75 basis points. This decision directly impacted the cryptocurrency market as well as the broader macro markets, causing the bitcoin price to drop by about 8% before a quick recovery.
The The drop led to massive liquidations across the market. By Thursday, the total liquidation in the crypto market exceeded $330 million, with more than 88,000 traders affected. Given the decline, it was clear that long-term traders suffered the most, but as the price experienced a sharp recovery as well, short traders were also hit hard.
Liquidations cross $330 million | Source: Coinglass
Of the $336 million in liquidations recorded in the last day, 58.96% were from long traders, which means that $138.13 million were from short liquidations. The largest single liquidation came from the Okex exchange, with a single trade worth $3.13 million via the BTC-USDT-SWAP pair.
Ethereum takes the lead
Recently, the focus has been on Ethereum after the digital asset was successfully upgraded from Proof of Work to Proof of Stake. This increased interest has inflated the performance of the cryptocurrency and its traders in recent times as well.
ETH liquidations accounted for nearly half of the $336 million in liquidations recorded across the crypto market in a 24-hour period. With 117.73 thousand of ETH liquidated, its dollar value reached $151.45 million during this time.
Market cap at $884 billion | Source: Crypto Total Market Cap on TradingView.com
In contrast, the leading cryptocurrency, Bitcoin, recorded a total of 5.50 thousand BTC liquidated during this time period with a total of $105.31 million. This means that Ethereum liquidation volumes are approximately 50% larger than Bitcoin’s.
XRP was another token that has seen massive liquidations, albeit to a lesser degree compared to Bitcoin and Ethereum. XRP saw a trading volume of $9.77 million, while that of SOL and ETC reached $6.73 million and 5.61 million percent, respectively. All other cryptocurrencies have seen liquidation volumes below $5 million.
Featured image from The World Economic Forum, chart from TradingView.com
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