Crypto Chaos: Liquidations, Tariffs, and the Art of Losing Money! 💸😱

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Ah, the crypto market, a veritable theatre of the absurd, where panic reigns supreme and liquidations have reached a staggering $1.30 billion in a mere 24 hours! Traders on X, in a fit of melodrama, are accusing exchanges of ‘capping’ long liquidations, as if they were characters in a tragic play, lamenting their misfortunes. 🎭

According to the ever-reliable Coinglass, a staggering 367,789 traders have found themselves in the unfortunate position of having their long and short positions liquidated, with the grand total of liquidations soaring to $1.34 billion. The pièce de résistance? A single liquidation order on Binance – BTCUSDT, valued at a jaw-dropping $20.80 million. One can only imagine the wails of despair echoing through the digital halls! 😩

In the past 8 hours alone, a staggering $235 billion has been wiped off the crypto market cap, a drop that would make even the most stoic investor weep. Major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Solana (SOL) have all succumbed to the crimson tide of despair, turning red in the wake of these mass liquidations. 🩸

As we speak, long liquidations have reached a staggering $1.24 billion, far outpacing the paltry $96.4 million in short liquidations. Most of this calamity is attributed to Bybit, which has just begun to recover from a catastrophic $1.4 billion hack, contributing to nearly $500 million in liquidations in the past 12 hours. According to Coinglass, a staggering 96% of the liquidations on Bybit are long. Truly, a tragic comedy! 🎭

In the runner-up position is Binance, with a mere $246 million in liquidations. Like Bybit, the vast majority of Binance liquidations are of the long variety, specifically around 90%. It seems that the other exchanges are not far behind, with an average of over 90% of their long positions meeting a similar fate. What a delightful spectacle! 🍿

Long liquidations, dear reader, are positions held by traders who, in their infinite wisdom, bet on ‘the long game’ in anticipation of a price increase. Alas, when the price of the asset falls beyond the set margin, the crypto exchange, like a heartless villain, will automatically close these long positions to prevent further losses. How very tragic! 😢

Traders on X have begun to speculate that exchanges are “flushing out” long positions to manipulate the market. One particularly theatrical trader, MartyParty, has accused Binance of “capulating the market” to liquidate more positions, calling out centralized exchanges for discouraging crypto traders from holding long positions. The audacity! 😏

“Leverage traders with any liquidity left, heed my warning: learn the lessons of the past, and use low leverage only. 1.8 to 3x max,” he cautioned his followers, as if he were a sage imparting wisdom to the masses. 📜

On the other hand, according to Coinank, Binance’s Bitcoin liquidation map reveals that the major BTC price drop “doesn’t offer as much profit” from liquidating long positions compared to “the price rising to liquidate short positions.” Bitcoin has fallen below $90,000 for the first time since November last year, a true tragedy for the ages! 😱

While conclusive evidence to support the claims that centralized exchanges are forcibly closing long liquidations remains elusive, it is abundantly clear that long positions constitute the majority of liquidations in today’s crypto market crash. A most unfortunate turn of events! 😔

Why is crypto down today?

As previously mentioned, Bitcoin has taken a dive of more than 6%, plummeting as low as $88,615 in the past 24 hours. BTC is currently trading at $89,742. Often regarded as the cornerstone of crypto, a dip in Bitcoin value usually drags the rest of the major coins and altcoins down with it, like a tragic hero falling from grace. 🥀

This decline in Bitcoin comes at a most peculiar moment, as just a day prior, Strategy CEO Michael Saylor purchased 20,356 Bitcoin worth nearly $2 billion. One would expect such a grand purchase to herald a rise in prices,

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2025-02-25 12:37