The cryptocurrency market is booming. Over a billion dollars in positions liquidated in the last 24 hours! Surprisingly, almost 90% of these liquidations occurred in the last 12 hours. This is one of the most massive liquidations for several months. Several major cryptocurrencies continue to see their value drop at the moment.
BTC Market Severely Hit by Violent Correction
If BTC serves as an indicator of the overall health of the crypto market, the violent fall in its price clearly illustrates the general instability of the market at the moment. Frightened by massive liquidations, traders and investors very quickly exited their positions, suffering huge losses and causing serial liquidations.
Overall, we estimate the total value of liquidated positions over $1.04 billion. The losses recorded on the long positions amounted to 836 million dollars while those recorded on the short positions amounted to 205 million dollars.
The Binance and OKX exchanges also had their share, with respectively liquidations of positions estimated at 308 million dollars and 189 million dollars. On the side of the Challenge, the consequences are just as disastrous.
The Decentralized Finance market loses more than 75 million dollars
Apart from BTC, ether (ETH), the largest altcoin in the market has also suffered a violent decline in its price, which has caused massive liquidations in the DeFi market. In all, the liquidations amount to more than $75 million. For the DeFi ecosystem, this is a very heavy blow.
We remember that last November, investors had already lost $100 million on the DeFi market. Currently, the price of ETH has already fallen below $1600. If ETH does not stabilize very quickly and drops below the $1500 mark, we may witness another more surging wave of liquidation.
How is such a violent correction to be explained? While waiting for more certain answers, we note that the crypto industry is a resilient industry by nature. The long-term value of cryptocurrencies cannot therefore be permanently affected by short-term fluctuations.
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