Key Points
- The crypto market sees a $96M loss due to liquidations as Bitcoin’s price drops to $65,000.
- Long traders suffered a loss of $62 million, with Ethereum taking the hardest hit.
The cryptocurrency market has been experiencing significant turbulence in the recent months. The value of Bitcoin and other digital assets are struggling to reach their March 2024 highs.
Bitcoin’s value fell by 2.5% last week, from a daily high of $69,547 to a low of $66,018. This resulted in nearly $200 million in leveraged position liquidations. The downward trend persisted with Bitcoin further dropping to $65,890 on June 17.
Massive Liquidations
This decline led to substantial liquidations, wiping out approximately $96 million from the market in the last 24 hours. Approximately 53,234 traders, who had heavily bet on Bitcoin’s anticipated price performance, were impacted.
Blockchain analytics company CoinGlass data reveals that long traders suffered losses of around $62.14 million during this period. In contrast, short traders experienced a smaller loss of $32.91 million.
Ethereum, the second-largest digital asset, was hit the hardest, with $21.36 million liquidated. Bitcoin users recorded around $10.54 million in liquidations.
Other cryptocurrencies like Solana (SOL), Worldcoin (WLD), and meme coins like PEPE (PEPE) and Dogecoin (DOGE) suffered combined losses of $21.31 million.
Long traders on Ethereum registered losses of around $7.31 million, and short sellers faced about $14.05 million in losses over the last day. Bitcoin traders, on the other hand, saw long sellers recording $6 million in losses, while short sellers registered about $4.48 million in losses.
Centralized Exchanges Impacted
The liquidations primarily occurred on centralized exchanges. Binance recorded the largest single liquidation order of around $4.21 million.
Binance, the world’s largest crypto exchange, contributed more than half of the funds liquidated from the crypto market in a single day. According to CoinGlass, Binance users lost about $48.21 million, accounting for 51.07% of the total liquidations. Other crypto exchanges, such as OKX, Bybit, and the recently rebranded HTX (formerly Huobi Global), also saw significant losses. These digital asset trading platforms liquidated around $29.63 million, $8.17 million, and $5.83 million, respectively, representing 31.16%, 8.59%, and 6.16% of the total liquidations.
Since the start of this month, all liquidations have primarily taken place on centralized exchanges. On June 7, $400 million were wiped out from the market, with all the liquidations occurring on exchanges like Binance, Kraken, Bybit, among others.
In the past week alone, the industry recorded liquidations amounting to $190.97 million, all of which took place on centralized exchanges.
