Tuesday, December 6, 2022

Crypto Traders Lose $280 Million Following Bitcoin’s Break Above $22,000

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As the week draws to a close, there have been some interesting turns in the price of bitcoin. The digital asset which had been struggling to hold the $20,000 had finally broken out of this funk and was able to make a rally to the mid $22,000s. This rally had naturally led to liquidations in the market and as time goes on, these liquidations ramped up with the volatility that has followed this price recovery.

More Than 65,000 Traders Rekt

As of Friday morning, data from Coinglass shows that more than 65,000 traders have been liquidated over the last 24 hours. The liquidations had surged following the quick recovery of bitcoin above $20,000 and by the end of the day, it had added over $2,000 to its value. Traders were quickly caught off guard and millions of dollars in short positions were liquidated.

Related Reading | Bitcoin Funding Rates Are Climbing As Price Continues To Struggle

In total, there have been more than $280 million in liquidations over the last day and they continue to grow. The majority has come out to be shorts with $214.74 million in the last day. However, long traders have not been spared the onslaught with $67.35 million in the same time period. The reason for the long liquidations is that the digital asset had peaked in the mid-$22,000s and has lost about $1,000 since then.

Bitcoin price chart from TradingView.com

BTC declines to low $21,000 | Source: BTCUSD on TradingView.com

Bitcoin traders are naturally bearing the brunt of the liquidations. Data shows that the past day has seen 6,320 BTC lost. This translates to $135.69 million, with the largest single liquidation event being on the BTC-USD pair at a total of $3.86 million on the Huobi crypto exchange.

Altcoins Follow Bitcoin Lead

Altcoins have maintained a close following with bitcoin when it comes to the liquidation trends. Altcoins such as Ethereum have seen tens of millions of dollars liquidated in the past day. ETH’s numbers have come out to a total of 69,110 ETH, coming out to a dollar value of $84.15 million.

Related Reading | Altcoins Take The Lead As Bitcoin Struggles To Hold Above $20,000

Others that have seen large liquidations include Solana (SOL) which has been making a splash in the NFT space lately. The Ethereum competitor had seen a total of $4.14 million liquidated coming out to a combined 111,970 SOL.

Others such as GMT, AVAX, and CRV have all recorded above $3 million. While MATIC, XRP, and SAND have seen liquidations of $2.85 million, $2.45 million, and $2.17 million respectively. 

About half of the liquidations have been recorded in the last 24 hours alone with $137.96 in total liquidations. Shorts continue to make up a larger portion of the liquidations but with the price of bitcoin in a current downturn, long liquidations are ramping up.

Featured image from MARCA, charts from TradingView.com

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