The bloodbath in the crypto market is reaching new heights as the price of Bitcoin continues to show significant volatility, impacting the broader altcoin market.
In the last 24 hours, as many as 361,972 crypto traders have been liquidated, incurring losses exceeding $1.17 billion. This development emerged as the price of Bitcoin tanked by 7% over the past day, revisiting lows of $95,500.
Notably, Bitcoin traded at an all-time high of $108,268 just three days ago. With the recent lows, the premier asset has lost approximately 12% of its value in the past few days.
Traders in the derivative market have borne the brunt of the Bitcoin price slump, most of whom had bet on further increases in Bitcoin. However, the market tilted to the side of the bears.
One Trader Sees Massive $15M Liquidation
Of the $1.17 billion liquidated in the market over the past day, a staggering $1.02 billion came from those who were long on the market. Shorts only suffered a loss of $143.3 million.
Bitcoin traders alone saw losses of $238.76 million, while Ethereum traders followed closely with $220 million liquidated. Notably, the biggest single liquidation order came from an Ethereum investor on Binance, who saw a trade of $15.8 million wiped out. This liquidation order was triggered when the price of Ethereum crashed to $3,432.
Meanwhile, the price of Ethereum didn’t stop there. It went on to touch lows of $3,330, with more traders incurring losses.
Aside from Bitcoin and Ethereum, traders of other crypto assets also saw significant value depreciation over the past day. Traders of Dogecoin, in particular, came next in line with liquidations exceeding $56.53 million.
Other notable liquidations include those from traders of XRP, with $47 million wiped out, and Solana, which also saw $38.53 million in losses.
Bitcoin Bull Trap
Recall that last week, during a flash crash of Bitcoin to $94K, as many as 584,000 crypto traders experienced liquidations worth nearly $2 billion. However, Bitcoin swiftly rebounded to set a fresh all-time high above $108K.
With the latest price crash, this rebound turned out to be a bull trap, giving investors false confidence to bet on further increases that did not materialize, resulting in significant losses for the bulls.
Market commentators have attributed the dramatic turn of events in the crypto market to recent “hawkish” statements from U.S. Fed Chair Jerome Powell during the most recent FOMC meeting.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
