TL;DR
- In the last 24 hours, liquidations in the crypto market exceeded $127.22 million, affecting 57,670 traders.
- Long positions accounted for the majority of the losses, with $89.81 million liquidated.
- The largest single liquidation order occurred on OKX in the ETH-USD-SWAP market worth $2.91 million.
In the last 24 hours, the cryptocurrency market has experienced significant volatility, resulting in liquidations that exceeded $127.22 million.
This event has affected a total of 57,670 traders, who saw their positions forcibly closed due to fluctuations in the prices of digital assets.
Most of the losses came from traders who had taken long positions, betting that the value of Bitcoin (BTC) and Ethereum (ETH) would rise.
These long positions accumulated losses totaling $89.81 million, while short positions, which were betting on a drop in prices, recorded losses of $37.40 million, according to official data from CoinGlass.
Even though the crypto market had shown signs of recovery after a previous decline linked to geopolitical tensions and post-Bitcoin halving market corrections in 2024, many traders failed to capitalize on this recovery.
Currently, Bitcoin is trading above $67,000 and Ethereum above $3,100, having fallen to lows of $57,000 and $2,800 respectively in April.
This recent volatility highlights the risks associated with cryptocurrency trading, where expectations of price movements can result in significant losses.
One of the most notable losses in this period was the largest single liquidation order, which took place on the OKX exchange platform.
This order, on the ETH-USD-SWAP market, reached a value of $2.91 million, highlighting how even large investors and experienced traders are not immune to the risks of the crypto market.
Volatility does not take breaks in the crypto market
This event is just the latest in a series of massive liquidations that have become commonplace in the cryptocurrency market.
In March, when Bitcoin regained ground from a two-year low and hit its previous all-time high of $69,000, approximately $1 billion was liquidated from the market in just 24 hours.
This trend of extreme volatility persists, with traders frequently facing liquidations due to rapid and significant price changes.
This month of May has been particularly challenging, with multiple episodes of large liquidations.
For example, on May 2, the market saw $360 million liquidated, followed by another event on May 13 that affected 71,245 traders and resulted in $130 million being wiped from the market.
These events underscore the unpredictable and often unforgiving nature of cryptocurrency trading.
In this context, it is crucial that cryptocurrency traders are well informed and prepared to manage risk.
The inherent volatility of the crypto market requires robust risk management strategies and a clear understanding of potential adverse scenarios.
As the market continues to evolve, episodes of sell-offs like the one seen recently will likely continue to occur, affecting both novice and experienced investors.
