Crypto Liquidations Hit $1.2 Billion As Bitcoin, Ethereum Plummet

Data shows the plunge in Bitcoin and the altcoins has sent a shockwave through the derivatives market, resulting in massive long ￰0￱ Has Just Witnessed A Crash To $104,000 Last Friday was a shock for the cryptocurrency market and it seems this Friday is continuing the trend as Bitcoin and company have just seen another leg ￰1￱ below chart shows how BTC’s recent price action has ￰2￱ the graph, it’s visible that shortly after the earlier crash, Bitcoin saw a rebound back to $116,000, giving investors hope for a market ￰3￱ surge, however, has now turned out to be just a dead-cat ￰4￱ a plunge of over 6% in the last 24 hours, BTC has returned to the $104,200 ￰5￱ altcoins have faced even heavier losses, with Ethereum being down almost 9% to $3,700.

Just like how last week’s crash caught out derivatives traders, the same has happened this time around as ￰6￱ Derivatives Market Has Seen Liquidations Of Nearly $1.2 Billion According to data from CoinGlass , a large number of liquidations have occurred in the cryptocurrency derivatives sector during the past day. A “ liquidation ” takes place when an open contract amasses losses of a certain percentage and is forcibly shut down by its platform. Here’s a table that shows the numbers related to the liquidations that have occurred on cryptocurrency exchanges during the last 24 hours: As displayed above, the sector as a whole has seen a total of $1.18 billion in liquidations during the past ￰7￱ most of the liquidity in this period has been toward the downside, it’s no surprise that long investors took the brunt of the ￰8￱ specifically, $917 million or 77% of the liquidations involved bullish ￰9￱ terms of the individual assets, Bitcoin-related contracts contributed the most toward the event, with over $431 million in ￰10￱ came second with $267 million in contracts and Solana third with $89 million.

Interestingly, XRP, which has a notably larger market cap than SOL, saw only $27 million in liquidations, despite a similar degree of volatility in this ￰11￱ suggests speculative interest around the asset hasn’t been as strong ￰12￱ some other news, the Bitcoin crash appears to have come alongside a shift to red values on the Coinbase Premium Gap , as CryptoQuant community analyst Maartunn has pointed out in an X ￰13￱ Coinbase Premium Gap tracks the difference between the Bitcoin price listed on Coinbase (USD pair) and that on Binance (USDT pair). A negative value on the indicator suggests users of the former are applying a higher selling pressure than traders on the latter.

Thus, given the latest shift, it would appear possible that institutional entities using Coinbase could, in part, be behind the bearish action.