What is happening in the cryptocurrency market right now is nothing short of carnage. Major coins are in freefall, altcoins are also not doing well. To drive the point home, market liquidations have just crossed the $600 million mark. This in just 24 hours. What’s really going on?
Falling cryptos and ATH of liquidations
Of the top 20 tokens in CoinGecko’s ranking based on market capitalization, only 4 tokens show a green curve. These are: Tether (USDT), Binance USD (BUSD), Shiba Inu (SHIB) and LEO Token (LEO). We can still push our research further, but the observation will remain the same.
For bitcoin, the price of the coin was trading at $21,236.19 at the time of writing, with a decline of 2.7% over 24 hours and 13% over 7 days. Regarding Ether, it was trading at $1,633.70 for a decline of 6.5% over 24 hours and 16.4% over 7 days.
But the worst was announced by Coinglass yesterday. This data indeed showed more than 168,000 transactions during the day. This caused traders to lose $602.71 million.
A few figures to remember
From this Conglass report emerge statistics that are not very favorable to cryptocurrencies:
- 168,586 transactions settled during the day of August 19;
- $602.71 million in recorded losses;
- 88.85% of these liquidations were long trades;
- $435.54 million in losses were realized in just 12 hours;
- $223 million is the total bitcoin liquidations during the same day, or 10,380 BTC;
- 98.88% of these liquidated BTC are akin to long trades;
- 48.47% of bitcoin liquidations took place on the Okex exchange;
- ETH saw $161.93 million liquidated;
- Ethereum Classic (ETC), Solana (SOL), and Filecoin (FIL) recorded losses of $25.63, $14.8, and $12.45 million respectively;
DOGE, ADA, LIK, XRP and AVAX also suffered from this history of mass liquidations. To say that the SHIB was not part of this lot. Is this the sign that he is walking on the moon?
The same liquidation statistics for the month of June?
As a reminder, last June the $600 million mark was reached in the crypto markets. A article by CryptoPotato dated June 19 gives us details on this.
At that point, bitcoin dipped below $20,000 for the first time, ending its run at $17,500. The same data provider Coinglass has on occasion advanced nearly $100 billion lost by the entire crypto market.
Additionally, the number of liquidated traders stood at 160,000 on a 24-hour scale. The 600 million dollars liquidated during this period being mainly bitcoins and ethers: respectively 300 and 200 million dollars.
Let’s not forget that the crypto market has already seen worse. Nairametrics reminds us of a liquidation worth $881 million at the beginning of the year. In those days, bitcoin traded at $40,000. The logic of these losses, you have probably already grasped it. Indeed, liquidations are often accompanied by price drops, transfers to the red of the main cryptos and altcoins. However, these assets have the power to be reborn each time they are knocked down.
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