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All the liquidated positions were held by long traders who had bet on the potential price performance of the second-largest digital asset in the industry.
The cryptocurrency market recently experienced a significant downturn, leading to massive losses for many investors, including an Ethereum whale who lost millions of dollars in a single trade.
Blockchain security firm PeckShield detected that a whale wallet, identified as “0xac4e…7597f”, which held a long position on Ethereum (ETH) perpetual contracts, was liquidated of 7,467.5 of the digital asset worth approximately $22.3 million, on Monday morning.
What Happened in the Crypto Market?
The crypto market is notorious for its volatility, meaning that prices can rise or fall dramatically in a short period. Recently, the market took a nosedive, with Bitcoin (BTC) dropping over 16% to $50,691 on August 5, while Ethereum suffered a 23.65% dip, plummeting to $2,226.
This sudden decline led to a widespread sell-off as investors rushed to protect themselves against potential losses, creating a chain reaction that caused the market to dip further.
As a result, many leveraged positions were abruptly closed, leaving traders stunned as they watched their assets vanish. Among the victims was an Ethereum whale who lost $22 million in a single trade.
Another victim, identified by the address “0x0b5a…d8c5”, according to PeckShield, was liquidated of nearly $6 million worth of Ether. The blockchain firm also disclosed that other Ethereum whales suffered losses of $5.8 million and $7.38 million, respectively.
All the liquidated positions were held by long traders who had bet on the potential price performance of the second-largest digital asset in the industry.
Wider Market Collapse
These losses are part of a broader market collapse that saw more than $1 billion in digital assets liquidated across various exchanges. Data from blockchain analytics firm CoinGlass showed that, within the past 24 hours, a total of 270,259 traders who opened both long and short leveraged positions on various cryptocurrencies suffered a combined loss of $1.04 billion.
During this period, Ethereum traders were liquidated of more than $340 million, with long traders suffering the brunt of the market decline. These traders lost $295 million, while short traders saw a modest loss of only $44 million.
As for Bitcoin traders, this group of investors faced significant losses totaling $346.39 million, with long traders losing approximately $298 million, while short sellers recorded losses of around $49 million in total.
Where the Liquidations Occurred
These liquidations occurred primarily on exchanges like Binance, HTX, Bybit, BitMEX, and OKX, with the largest single liquidation order occurring on Huobi via the BTC/USD pair, valued at around $27 million.
Crypto traders on Binance lost approximately $405 million as the bears overtook the bulls over the weekend. Similarly, OKX saw losses of around $315 million, while HTX traders lost approximately $146 million.
The grip of the bears on centralized exchanges remained strong, overpowering Bybit and BitMEX, despite their security measures. Both digital asset trading platforms lost $87 million and $40 million, respectively.
