As a seasoned crypto investor with battle-scarred fingers from countless market fluctuations, I’ve witnessed my fair share of rollercoaster rides in this digital frontier. Today, however, feels like a particularly wild descent. The sudden $1 billion in liquidations and the ensuing market sell-off have left me with a familiar feeling of both exhilaration and dread.
Within just 24 hours, an unexpected and intense period occurred in the cryptocurrency world, resulting in approximately $1 billion being liquidated due to steep drops in popular digital currencies such as Bitcoin and Ether. This sudden change sparked widespread apprehension among investors, reflecting a noticeable downturn.
mass selling on various markets has led to approximately $1 billion worth of cryptocurrency-tied futures being liquidated, primarily impacting Bitcoin (BTC) and Ether (ETH), where the bulk of the losses have been observed.
In summary, Bitcoin and Ether futures experienced significant liquidations totaling $464 million and $382 million respectively. The market downturn was intensified by speculation about Jump Trading potentially withdrawing from its cryptocurrency operations, as well as a strengthening Japanese yen, placing additional stress on an already unstable market.
As an analyst, I’ve observed a notable event in the cryptocurrency market: approximately 275,000 traders experienced liquidations, with a massive $27 million BTC/USD trade taking place on Huobi exchange. Remarkably, about 87% of these liquidations impacted long traders – those who had speculated on price increases. Unfortunately, due to market shifts that worked against their positions, they suffered substantial losses.
In the last day, Bitcoin decreased by more than 10%, and Ether experienced a dramatic decrease of about 25%. However, Ether’s value drop was particularly significant, representing the largest one-day decline since May 2021. During that period, prices for Ether plummeted from over $3,500 to $1,700.
When a trader’s investments with leverage (borrowed money) on an exchange experience heavy losses, the exchange may end the trade forcibly because the trader can’t provide enough collateral (margin). This sudden ending of trades can cause panic selling among other traders, leading to quick and extreme changes in market prices.
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2024-08-05 19:16