A significant drawdown in the crypto market over the past 24 hours has led to hundreds of millions of dollars worth of losses for traders.
The global crypto market shed 6% of its value in the past 24 hours as investors took profit across the board following an extended rally. Bitcoin’s price dropped as low as $66,000 today, with most coins within the top ten seeing losses between 6 to 13%.
Amid the huge downward volatility, the biggest losers evidently were traders who held long positions on Bitcoin and other crypto assets. According to data tracker Coinglass, around $813 million has been liquidated across the crypto market in the past 24 hours.
More than 75% of that value came from long traders who lost $663 million as Bitcoin fell to its lowest value in over a week. Conversely, late shorts who hoped for Bitcoin to drop further lost $156 million within the same timeline.
The most significant liquidation took place on the popular crypto exchange OKX. A single trader suffered a $13.3 million dollar liquidation after failing to add sufficient margin to their order as Bitcoin slipped.
Meanwhile, BTC’s decline spilled over to the altcoin market, with XRP, Cardano, Shiba Inu, and Dogecoin among the biggest losers in the top ten. Evidently, traders who held long positions on these altcoins saw significant capital losses.
Coinglass shows over $11 million in liquidations from XRP traders, with nearly $10 million attributed to long traders. Cardano, Shiba Inu, and Dogecoin saw long-position liquidations of $5.6 million, $3.9 million, and $16 million, respectively.
Crypto Market Attempts Fightback
Following liquidations across the board, it is noteworthy that market sentiment remains generally bullish. This is indicated by the pace at which investors have tried to buy in at different support levels as the market hit its most recent lows.
For instance, since dropping as low as $66,000, Bitcoin has made a rebound to nearly $68,000 at the time of writing. Many altcoins have also seen a progressive bounce from their lowest level in the past 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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