Key Points
- The crypto market has seen over $135 million in liquidations as Bitcoin nears $70,000.
- This has resulted in losses for 54,843 traders worldwide.
As Bitcoin approaches the $70,000 mark, the crypto market has experienced a sharp increase in liquidations. Over $135 million has been wiped out in the last 24 hours.
This sudden market fluctuation took many investors by surprise, causing losses for 54,843 traders globally.
Bitcoin’s Rise Triggers Liquidations
Bitcoin, which hasn’t reached this level since its peak in March when it briefly traded around $73,000, is once again on an upward trajectory. This rise in Bitcoin’s price has not only sparked market excitement but also led to a wave of liquidations on major crypto exchanges like Binance, OKX, and Bybit.
Data from CoinGlass, a leading platform that monitors crypto liquidations and other market trends, reveals that most of these losses stemmed from traders who had placed highly leveraged bets. These traders anticipated either a price reversal or a more gradual rise. As Bitcoin surged toward $70,000, their positions were forcibly closed, resulting in significant financial losses.
Short Traders Bear the Brunt
Short traders, those betting on a potential price reversal of Bitcoin, suffered the most severe losses. In the past 24 hours, they lost approximately $95 million to the bears. Long traders, on the other hand, saw around $40 million in liquidations. The combined liquidation total stood at $135 million at the time of writing.
The liquidations across the market were triggered by the rising prices of several major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Apecoin (APE), and Dogecoin (DOGE). CoinGlass data indicates that Ethereum traders suffered the steepest losses, with approximately $28 million liquidated, followed by Bitcoin traders who lost $25 million.
Apecoin and Dogecoin experienced $15 million and $8 million in liquidations, respectively. Other cryptocurrencies saw a collective loss exceeding $14 million. XRP, in particular, registered up to $700,000 in liquidations in the past 24 hours alone.
The single largest liquidation order occurred on Binance, where a trader lost nearly $7 million in an Ethereum/USDT pair. The exchange also accounted for more than half of the total liquidations.
The liquidation trend has remained consistent since the market rebound last week following several months of massive decline. On October 16, it was reported that crypto traders suffered an enormous liquidation of more than $300 million in a single day.
Just a day earlier, on October 15, over 64,100 traders suffered a combined loss of $184.88 million, with Bitcoin accounting for $48.62 million of those liquidations. Short traders were once again the hardest hit, having anticipated a further decline in Bitcoin’s price. Ethereum traders also faced significant losses, with $30.22 million in liquidations, primarily affecting short positions.
