The recent crash in the crypto market has sent shockwaves throughout the industry, with Bitcoin and altcoins taking a hit. As the Bitcoin price continues to plummet, many traders have found themselves in a precarious position, leading to significant losses in just the last day. The market-wide panic has caused tens of thousands of traders to lose their positions, resulting in hundreds of millions of dollars in liquidations.
Over the last 24 hours, the price of Bitcoin has experienced a drastic drop, falling below $57,000 before staging a slight recovery. Despite this recovery, the damage has already been done, with long traders bearing the brunt of the losses. According to data from Coinglass, there has been a total of $292.8 million worth of crypto liquidations in the last day alone. A staggering 105,458 traders have been liquidated, with the majority (88.61%) of them being long traders.
The recent crash has not only affected Bitcoin but also other major cryptocurrencies, such as Ethereum. Ethereum saw $69.86 million worth of liquidations, making it the second-largest cryptocurrency to suffer losses. The largest liquidation event occurred on the Huobi crypto exchange, where a single liquidation call resulted in a loss of $10.49 million. Other major exchanges, including Binance, OKX, Bybit, and CoinEx, also recorded significant amounts of liquidations, further highlighting the widespread impact of the market crash.
As the price of Bitcoin shows signs of bouncing back, traders who had taken short positions are beginning to feel the pressure. Coinglass data indicates that long liquidations have dropped from 88.61% to 56.48% in the last hour, suggesting a shift in trader sentiment. However, if the price continues to rise, short traders may face further challenges, especially if they were influenced by the previous bearish trend.
Despite the negative sentiment surrounding the market crash, the daily trading volume of Bitcoin has surged by 50%, reaching $37.59 billion. This increase in trading activity indicates a potential shift in market dynamics, with bulls starting to build support for a recovery. At the time of writing, Bitcoin is trading at $57,909, reflecting a 3.87% decline in the last day. On a weekly chart, Bitcoin is down by 5.23%, while on a monthly chart, the decline stands at 15.95%.
The recent crash in the crypto market has had far-reaching implications for traders and major cryptocurrencies. While the initial panic caused significant liquidations and losses, the market seems to be showing signs of stabilization. However, traders need to remain cautious as the market dynamics continue to evolve, with shifts in sentiment likely to impact future trading outcomes.