Key Points
- Cryptocurrency liquidations have exceeded $120 million, impacting thousands of traders.
- Bitcoin and Ethereum’s recent recovery has caused significant losses for numerous traders.
The cryptocurrency market has started to recover from its previous lows, but this hasn’t been beneficial for all. CoinGlass’s Liquidation Heatmap reveals that in the last 24 hours, thousands of crypto traders have experienced substantial losses, with total liquidations exceeding $120 million.
At present, Bitcoin (BTC) and Ethereum (Ether) are trading above $67,000 and $3,100, respectively, after falling to lows of $57,000 and $2,800 in April. The earlier market drop was attributed to geopolitical tensions in the Middle East and market adjustments after the 2024 Bitcoin halving event.
Impact on Traders
Despite the recent recovery, 59,032 traders have suffered liquidations, bearing the impact of these market fluctuations.
The majority of losses were incurred by traders who had taken long positions, hoping for an increase in the value of BTC and Ether. These hopeful traders collectively lost about $87.05 million. On the other hand, those holding short positions, betting on a potential decline of these digital assets, experienced losses totaling around $28.31 million.
Traders of Bitcoin lost around $23.15 million in a single day, while those betting on Ethereum’s price suffered a combined loss of $19.70 million. Additionally, crypto traders betting on Solana (SOL) faced $8.84 million in losses, while other digital assets saw combined losses of $23.24 million.
Major Liquidations
CoinGlass’s Liquidation Heatmap also showed that the largest single liquidation order occurred on the crypto exchange OKX, with the company losing around $4 million in a single order over the past 24 hours.
In the past 12 hours, nearly 60,000 traders suffered combined losses of $56.33 million, with $14.43 million coming from BTC, $7.14 million from Ether, and $10.23 million from other cryptocurrencies. Over the past four hours, around $29.36 million have been liquidated, with $10.79 million coming from long traders and $18.58 million from short positions.
Liquidations have become a frequent event in the crypto market, with traders often losing large amounts due to market fluctuations. For example, in March, when Bitcoin rebounded from a two-year low and reached its previous all-time high of $69,000, approximately $1 billion was liquidated from the market within 24 hours.
This trend has continued, with traders still losing significant amounts to the volatile crypto market. On March 14, Bitcoin surged to a new high of $73,000, surprising the industry. This price surge resulted in another $360 million being wiped out from the market.
This month has been particularly harsh, with millions lost to liquidations. On May 2, a total of $360 million were liquidated. Two weeks later, 71,245 traders suffered another massive liquidation when about $130 million vanished from the market on May 13.
