Crypto Liquidations Surpass $1 Billion
06 Aug, 2024 ● Coin news
Crypto investors and traders suffered approximately $1.08 billion in total liquidations due to the uncontrolled price drop of major cryptocurrencies, including Bitcoin, Ether, and Solana.
On August 5, the crypto market experienced a significant decline triggered by the weakening global economy, further exacerbated by the sudden crash of Japan’s stock market.
As a result, nearly 300,000 crypto traders were liquidated from their leveraged positions or collateral trades, according to Coinglass data.
In the ongoing bear market, popular cryptocurrencies saw considerable depreciation, with Bitcoin and Ether falling by over 10% and 20%, respectively.
Consequently, traders expecting a prolonged bull run lost their positions in this downturn.
As Bitcoin prices fell from around $65,000 to the $50,000 mark, traders holding long positions on crypto exchanges lost over $315 million in under 24 hours. Conversely, short sellers lost $62.23 million.
During the same period, Ethereum long position traders lost a total of $305 million, while short position traders lost more than $50 million.
In total, long positions across all crypto assets lost over $930 million in 24 hours, while short sellers lost $163.45 million. Nearly 80% of all traders were liquidated in less than 12 hours.
Coinglass data revealed that the largest single liquidation order occurred on the crypto exchange Huobi, where a trader lost $27 million in the BTC/USD trading pair.
Most liquidations took place on Binance, the largest crypto exchange by trading volume.
Other significant liquidations were recorded on OKX, Huobi, Bybit, and BitMEX, among other exchanges.
While traders are awaiting a return of the bull market, hackers seized the opportunity for profit during the bear market.
As Ether lost over 20% of its value, dropping from approximately $2,760 to $2,172, funds linked to a hack on the crypto bridge Nomad in August 2022 were used to buy 16,892 Ether.
Onchain activity showed that hackers bought ETH at low prices and funneled it through the crypto mixer Tornado Cash to obscure the transactions.
Sources:
https://cointelegraph.com/news/crypto-market-crash-1b-liquidations-2024
