Key Points
- Over 32,000 traders liquidated in the crypto market, erasing about $85 million.
- Liquidations were primarily on OKX, Binance, Bybit, and HTX exchanges.
In the last day, more than 32,000 traders speculating on assets like Bitcoin (BTC), Solana (SOL), Notcoin (NOT), and PEPE saw their trades liquidated. This resulted in a loss of roughly $85 million from the market.
The liquidations happened primarily on centralized exchanges. OKX was the exchange with the most liquidations. CoinGlass, a blockchain analytics firm, provided data showing that the largest liquidation order occurred on OKX, a Seychelles-based exchange established in 2017. This exchange experienced a loss of $4.24 million on an ETH/USDT pair.
Exchanges Suffering Losses
Traders on Binance, Bybit, and HTX (formerly Huobi Global) collectively incurred losses of around $45 million in the past 24 hours. Each of these exchanges, along with OKX, accounted for approximately 44%, 36%, 10%, and 5% of the total liquidations in a single day, respectively.
Several factors contributed to these liquidations, including the ongoing market downturn. Bitcoin’s price fell below $60,000 to $58,000 on Monday, marking its lowest point this month. Over the past week, Bitcoin has lost up to 6% of its value, marking the second-worst weekly decline of 2024. Its market cap has decreased from $1.3 trillion to the current value of $1.22 trillion, impacting the global digital assets market.
The total cryptocurrency market currently stands at $2.28 trillion, as reported by CoinMarketCap.
Predictions of Further Decline
Despite the current market panic caused by Bitcoin’s sudden drop, analysts predict more potential downward movement before any chance of recovery.
Earlier this week, Markus Thielen, founder of the respected crypto research firm 10x Research, published new research highlighting Bitcoin’s struggle to surpass key resistance levels. According to him, Bitcoin’s inability to break this level has formed a “double-top price pattern”, which could drive the crypto asset lower, possibly down to $50,000.
Thielen explained that Bitcoin might transition from its current trading range of $60,000 to $70,000 into a formation indicating further declines before potentially rallying. He also noted that despite potential positive factors such as the upcoming US presidential elections and the expected Consumer Price Index (CPI) in 2024, Bitcoin could still experience a “steeper correction”, posing risks for retail investors. Thielen emphasized that such topping patterns historically expose average retail investors to vulnerability, often resulting in significant drops across various alternative cryptocurrencies.
