bitcoin liquidiations Archives

The overall financial market is discouraging this week. Stocks and cryptos are plummeting as anticipation of the upcoming rate hike grows. The latest CPI for August was a force that pushed the market towards the edge.

The figure was higher than expected, increasing fear in the industry. As the Feds prepares to hit the market with the biggest rate hike, exchanges have started liquidating leveraged positions. This strategy is geared at cutting down losses as events unfold.

Traders’ Positions Liquidated As The Market Panics

Coinglass has disclosed the data of liquidations currently taking place across diverse exchanges. According to the data app, 130,087 traders have seen their positions liquidated.

The total amount has reached $431.51 million at the time of writing. Many crypto traders of Bitcoin and Ethereum were hit more in the ongoing frenzy. Bitcoin traders lost $44.5 million of their leveraged positions, while Ethereum traders lost $8.39 million in liquidations.

Going by the positions, the longs took the lead while the short position holders followed suit. According to Coinglass, the amount between the two is 10X, and the highest liquidation so far occurred on Okex.

Data shows that Okex liquidations amounted to $190.41, comprising $181.30million in long positions and $9.11 million in short positions.

The following exchange with high liquidations after Okex is Binance. The exchange liquidated $77.49 million in long positions and $12.99 million in short positions, amounting to $90.48 million.

Other top riders in a frenzy include FTX with $57.59 million in long and short positions and Bitmex with $28.78 million. There is also ByBit and Huobi, with $27.86 million and $18.91 million in total liquidations.

Bitcoin is currently trading above $19,500. | Source: BTCUSD price chart from TradingView.com
Macro Factors Responsible For Market Downtrend

The price movement of assets this week has increased the uncertainty in the crypto market. Many cryptocurrencies are trading in red, with a double-digit downfall in the last 24 hours. The price crash has pushed the overall market capitalization below $1 trillion.

Analysts are attributing the ongoing downtrend to many macroeconomic factors. The most prominent one is the CPI data that shocked everyone on September 13. The data was higher than the market expected, showing inflation still rages.

The effect of the data was seen immediately after its release. The number one crypto, Bitcoin, lost $1000 within minutes. From then onwards, other crypto assets started shedding prices to the detriment of investors.

Another factor seemingly pushing the4 market down is Ethereum Merge. After the upgrade, the crypto price plunged to $1300, leading to many people believing the predictions that it was overhyped.

Due to the high CPI data, the Fed’s meeting on September 21 is causing panic in the market. The market is waiting for the next interest rate hike, and pundits are already predicting a figure that hasn’t been seen in 40 years. The Feds might move to a 100-point after the meeting.

Currently, both stocks and crypto are strongly bearish. After September 21, the market move might be more terrifying than what it is today, September 19.

Featured image from Pixabay and chart from TradingView.com

The crypto market has been subject to large liquidation following the price crash. Coming out of the weekend, the market had recorded one of its worst crashes which saw bitcoin fall below the $30,000 territory for the first time this year. With this had come hundreds of millions in short liquidations. However, the bloodbath seems far from over as the market continues to crumble and liquidations have now run over the $1 billion mark.

Crypto Traders Getting Rekt

After the crash that rocked the market coming out of the weekend, crypto traders had taken a hard hit. However, like always, this is always skewed to one demographic, and long traders had taken the hit with 77.5% of longs making up the majority of the $421 million liquidation figure that had been recorded on Monday.

Related Reading | Bitcoin Price Hits Three-Month Low, What’s Driving This?

With Tuesday now on the horizon has come even more challenges for traders in the space. While most speculated that bitcoin would not fall to $30,000, it had done just that and even fell briefly to the $29,000 territory before recovering once more. The damage would be done though as more traders would see their positions liquidated in the market.

This number has now gone above $1 billion liquidated in the past 24 hours with Bitcoin and Ethereum traders bearing the brunt of it. Once again, long positions continue to dominate the liquidations as bitcoin struggles to find its footing and recover. The numbers are slightly better in favor of long traders falling from 77.5% on Monday to 71.8% on Tuesday.

Crypto liquidations surpass $1 billion | Source: Coinglass

The total amount of liquidations sits at $1.10 billion at the time of this writing. Longs account for $789.27 million and shorts came out to a total of $310.04 million. Bitcoin and Ethereum continue to rival one another with $354.77 million and $326.51 million in liquidations respectively.

Market Sentiment Dives To Hell

Along with the crypto market crash has been the dip in market sentiment. This really is no surprise as sentiment has been moving consistently into the negative for the past couple of weeks. However, the market crash has accelerated this movement.

The Crypto Fear & Greed Index now has a reading of 10. This is one of the lowest that the index has ever been in the past year. With the number so low, it puts the market in the extreme fear territory. This means that investors are warier than ever to put money into the market, with some opting to liquidate their holdings in order to avoid more losses.

Related Reading | Ethereum Miners Surpass Bitcoin Miner Revenue By $224M

One thing to note though is that low sentiment can also be a prelude to a bull rally. The last time the index was this low was in July 2021. What followed was a recovery that eventually served as the lift-off point for bitcoin hitting its all-time high of $69,000. If history repeats itself, then this may very well be another start to a massive bull rally. That is if the bottom of the current crash has been achieved.

Crypto market loses over $1 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from ITPro Today, chart from TradingView.com