Massive Liquidation Event Hits Cryptocurrency Market, Bitcoin and Ethereum Most Affected

A significant liquidation event occurred globally, with $228 million liquidated in the past 24 hours, affecting primarily Bitcoin (BTC) and Ethereum (ETH) traders. This unfolded across major exchanges, notably involving a $2.79 million BTCUSDT liquidation on Binance.

Network-wide liquidations underscore risks tied to high leverage, with specific focus on BTC and ETH positions. Immediate market reactions highlight the high volatility of leveraged derivatives markets. Concerns over systemic risks are rising without direct institutional triggers or regulatory advisories.

$228 Million Liquidations Shake Crypto Markets

Recent network-wide liquidations amounted to $228 million, as recorded by ChainCatcher using Coinglass data. Bitcoin and Ethereum experienced significant impacts with millions in short and long positions affected across major crypto exchanges.

Market volatility heightened due to these leveraged positions, which affected 93,663 traders globally. The largest single liquidation, valued at $2.79 million, took place on Binance in the BTCUSDT market. High market leverage led to cascading liquidations.

Industry leaders, including Binance’s Changpeng Zhao, have yet to release statements addressing these recent events. Community sentiment points to anxiety over high leverage use and price manipulation.

Bitcoin and Ethereum Face Increased Volatility Risks

Did you know? The recorded $228 million liquidated in the past day mirrors the $204 million spike observed in May, indicating recurring high volatility episodes in the crypto market.

Bitcoin’s current trading price of $119,254.45 shows a 1.58% 24-hour increase, while its market cap stands at $2.37 trillion, as per CoinMarketCap. With a 63.75% market dominance, Bitcoin has seen a 41% price surge over the past 90 days. Its 24-hour trading volume totals $47.58 billion.

Coincu’s research highlights potential long-term implications of high leverage in derivatives markets, considering historical patterns of liquidation events. Increasing volatility could necessitate stricter regulatory interventions and potentially impact investor behavior regarding leveraged crypto investments.