Bitcoin Plunge Wipes Out $293M in Long Crypto Positions Amid $59,000 Drop
Data indicates that the crypto derivatives market has experienced a significant number of liquidations in the recent past due to Bitcoin’s drop to $59,000.
Bitcoin’s sudden plunge below $60,000 in the last 24 hours has surprised investors, wiping out the cryptocurrency’s recent recovery.
The asset’s trajectory in the past days is illustrated in the chart below.
Following the crash, Bitcoin briefly fell below $59,000 but has since bounced back to $59,900, although it remains down approximately 4% in the last day.
The broader crypto market has mirrored Bitcoin’s downward trend, with many altcoins limiting their losses compared to BTC.
Given the sector’s recent volatility, the derivatives market has been notably impacted.
The crypto derivatives market has witnessed $319 million in liquidations, as per CoinGlass data, with a significant portion coming from long contract holders.
The imbalance between longs and shorts can be attributed to the market crash affecting Bitcoin and other cryptocurrencies.
Bitcoin and Ethereum have been the most affected by the liquidations, with Ethereum surprisingly having similar liquidation amounts to Bitcoin despite comparable negative returns.
This anomaly suggests heightened speculation around Ethereum, leading to increased leverage and subsequent liquidations.
The market’s response to these liquidations and the overall interest in Ethereum will be crucial in the coming days.
Featured image from Dall-E, CoinGlass.com, chart from TradingView.com.
