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Breaking down the losses across different blockchains, BTC traders took the highest hit, with $4 million liquidated in the network in the last 24 hours.
In the early hours of Friday, the crypto market took another hit following reports of a worsening crisis in the Middle East, with Bitcoin (BTC) price dropping from $60000 to $59000 for the first time in weeks.
While BTC has slightly recovered, and the crypto asset is now trading above $64,000, the decline caused massive liquidation, resulting in the loss of more than $282 million in a single day. According to CoinGlass data, the liquidation impacted many traders, totaling $89,363.
Crypto Traders Suffer Massive Liquidation
In the last 24 hours, short traders faced losses exceeding $132 million, while long traders incurred a total loss of $150 million. CoinGlass also showed that within the last hour alone, $172 million had been liquidated from leveraged positions as BTC continued to rise above traders’ expectations.
Breaking down the losses across different blockchains, BTC traders took the highest hit, with $4 million liquidated in the network in the last 24 hours. Ethereum (ETH) protocol saw $990,000 liquidated on its platform, while Solana (SOL) traders lost approximately $559,000.
Other blockchain protocols also saw losses, with Dogecoin (DOGE) and FTM losing $158,000 and $172,000, respectively. The remaining networks collectively lost $293,000.
The liquidations also impacted centralized exchanges (CEXs), with the largest single liquidation order occurring on OKX. According to CoinGlass data, a trader on OKX lost over $4 million in a single order within the last 24 hours. This highlights the risks associated with trading cryptocurrencies, especially in volatile market conditions.
Bitcoin Halving 2024 Could Impact the Crypto Market
The ongoing liquidation frenzy coincides with the looming Bitcoin halving, scheduled for April 19 or 20, 2024. Currently, only 100 blocks remain before the halving takes place.
The crypto market has historically experienced significant downturns, with BTC price fluctuations around halving events. In the months to days leading up to the halving, there is often a buildup of anticipation in the market, with investors speculating on the potential impact of the event on the price of BTC.
This speculation can lead to increased volatility and trading activity as traders adjust their positions in anticipation of possible price movements. The current market conditions, characterized by high volatility and significant liquidation, may be partly attributed to the upcoming Bitcoin halving.
Earlier this week, the founder of 10x Research, Markus Thielen, predicted that crypto and stock markets may experience further declines due to the current unexpected and persistent inflationary pressures.
Thielen said one of the known indicators of the impending drop is the behavior of the bond market. With the bond market now projecting fewer than three interest rate cuts and 10-year Treasury Yields exceeding 4.50%, Thielen believes that the financial industry may have reached a critical tipping point for risk assets.
These developments suggest a shift in market sentiment towards a more cautious outlook on risk assets, with investors potentially re-evaluating their investment strategies in response to the changing market dynamics.
