Marketwide turbulence results in cryptocurrency liquidations totaling $160m.
The cryptocurrency market is experiencing a surge in liquidations as it undergoes a correction. Coinglass data reveals that the total value of crypto liquidations in the past 24 hours has reached $160.71 million. The majority of these liquidations, amounting to approximately $127.53 million, are long positions, indicating a market reversal. On the other hand, only $33.18 million worth of diverse cryptocurrencies have been eliminated from short positions.
Coinglass further reports that global crypto open interest has decreased by 2.95% in the past day, currently sitting at $69.3 billion. Among the top crypto exchanges, Binance leads with $75.79 million in liquidations, followed by OKX with $53.91 million, Bybit with $14.23 million, and Huobi with $11.32 million. Ethereum (ETH) liquidations have reached $27.81 million, surpassing Bitcoin (BTC) liquidations at $20.36 million.
The surge in ETH liquidations can be attributed to the increased exposure ratio of ETH to BTC traders, which occurred after the approval of spot Ethereum ETFs in the U.S. Before the approval, permanent ETH holders had accumulated over 100,000 ETH tokens on May 20.
In terms of specific cryptocurrencies, Notcoin (NOT) takes the third spot with $6.2 million in liquidations. However, the liquidated amount consists of $3.77 million from short NOT positions and approximately $2.43 million from long positions, reflecting a 29% price rally for the asset.
The rise in liquidations coincides with a 2% decline in global crypto market capitalization in the past 24 hours. The market cap has dropped from $2.7 trillion to $2.66 trillion, according to CoinGecko data. Additionally, the daily trading volume has decreased by 8% and currently stands at $86 billion.
Given the declining trading volume and open interest, it is expected that there will be lower price volatility in the near future, particularly for large cryptocurrencies.
Cathie Wood, speaking at Consensus 2024, expressed her belief that Bitcoin is “unstoppable.”
