Data highlights that crypto-tracked futures have lost more than $1 Billion recently, and this was because of weak sentiment toward the crowned crypto-asset Bitcoin (BTC) and other cryptocurrencies, given the not-so-good global economic outlook.
Liquidation is basically when an exchange firmly closes a trader’s leveraged position because of partial or complete loss of the trader’s initial margin. This usually happens when a trader fails to meet the margin requirements for a leveraged position.
The losses came following the instance when the top cryptocurrency lost a major support level of $25,000. And the crypto market capitalization hit a level that was earlier witnessed last January.
In Fact, some of the primary digital assets declined by an average of more than 15%. Bitcoin here contributed to the liquidation of over $532 Million, whereas the second largest cryptocurrency, Ether (ETH), accounted for $317 Million and Solana (SOL) at roughly $20 Million.
The Futures tracking Cardano (ADA), StepN (GMT), and BNB witnessed more than $6 Million in losses each. And approximately 213,000 individual trading accounts saw liquidations too.
FTX, the significant crypto exchange, recorded more than $417 in liquidations. OKX saw $251 Million, whereas Binance saw $198 Million.
The decline that came is also due to the plans of the US Federal Reserve to hike rates in the coming months to fight the side effects of the record inflation.
Whereas the overall cryptocurrency market has been affected due to the several bearish trends which might continue in the near future too. Major cryptocurrencies have been highly impacted, with them seeing considerable downfalls in their prices.
The flagship crypto BTC is currently trading at $21,111 with a market cap of $402,581,124,456 and is up by around 0.11% in the last twenty-four hours.
And Ether (ETH) is trading at $1,117 with a market cap of $135,374,845,087 and is up by around 0.33% in the last twenty-four hours as of writing.
Source: https://www.thecoinrepublic.com/2022/06/16/crypto-witness-more-than-1b-in-liquidation-following-bitcoin-ether-broke-major-support-levels/