Bitcoin fell 5% today, triggering over $192 million in long liquidations on crypto exchange Bybit.
In the past 24 hours, Bitcoin has experienced a significant decline of approximately 5%, leading to the liquidation of about 10,000 BTC in open interest on the Bybit BTC/USDT market.
Notably, about $192.90 million worth of long positions wiped out within just four hours. This event caused CoinGlass, a liquidation heatmap provider, to urge traders to lower their leverage as the market volatility intensified.
About 10K #BTC open interest wiped out on #BYBIT BTCUSDT.
A large number of long positions were liquidated in 4 hours, about $192.90M.
Guys ,Lower your leverage .https://t.co/dsybi31ZDu pic.twitter.com/SFTyFjSFWk
— CoinGlass (@coinglass_com) August 27, 2024
At the time of reporting, the total liquidations on Bybit had cooled to $1.42 million over the past four hours. Binance, the largest cryptocurrency exchange by volume, saw an even larger liquidation event, with $4.06 million in positions closed within the same timeframe.
Strong Sell Pressure
Notably, the most recent data showed that the Cumulative Volume Delta (CVD) metric reveals an overwhelming sell-side dominance during this market movement.
Notably, the CVD, which measures the difference between buy and sell volumes, dropped dramatically to around 10,211, signaling aggressive selling pressure.
This metric confirms the liquidation of long positions as sell orders vastly outnumbered buy orders. In addition, the aggregated spot CVD saw a steep decrease of approximately 2,737, further proving the intense selling pressure in spot markets.
Funding rates also reflected this bearish sentiment, with a slightly negative rate of 0.0003. This indicates that short sellers are currently paying long traders to maintain their positions, which typically occurs in bearish markets where short positions dominate.
Liquidation Events on Ethereum
Similar liquidation activity was observed in the Ethereum market, where ETH dropped by around 10%. According to data from Lookonchain, 87,405 traders were liquidated in the broader crypto market, resulting in $318.46 million in total liquidations.
Among the most significant liquidation events was a $12.67 million loss by a whale on an ETH/BTC long position. Another whale faced a $12.6 million loss on a BTC long position.
The price of $BTC dropped by ~7% and $ETH dropped by ~10%!
87,405 traders were liquidated for $318.46M in the past 24 hours.
A whale was liquidated for $12.67M on an ETH/BTC long position.
Another whale was liquidated for $12.6M on a $BTC long position.… pic.twitter.com/9aObwOYjKv
— Lookonchain (@lookonchain) August 28, 2024
A Flurry of Liquidations This Month?
Further data from CryptoQuant on August 12 highlighted a notable liquidation event in Ethereum’s futures market, although the crypto had started to stabilize. These liquidations marked the highest levels since November 2022, pointing to an intense sell-off.
As a result, the futures market experienced a reset, which could stabilize the market as leveraged positions were cleared. Historically, such events have led to temporary market recoveries, with renewed investor interest potentially driving future price movements.
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Source: https://thecryptobasic.com/2024/08/28/bitcoin-drops-5-wiping-out-192-90m-in-longs-as-liquidations-surge/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-drops-5-wiping-out-192-90m-in-longs-as-liquidations-surge