The cryptocurrency market has undergone a sale in the past 24 hours, wiped out $ 2.29 billion in liquidations – more than the cocvid crash and the collapse of the FTX.
According to Coinglass data, 733,974 traders were liquidated during the last day, with $ 1.89 billion from long positions, representing 82.73% of total liquidations.
The liquidation in long -term trading occurs when the position of a merchant is forcibly closed due to insufficient margin to cover the losses. Long positions bet on the increase in prices of an asset, while the open positions benefit from the drop in prices. When prices evolve against the position of a merchant, the exchanges liquidate assets to avoid new losses.
The largest unique liquidation order took place on HTX, where a BTC-USDT exchange worth $ 38.78 million was wiped out.
Bitcoin dropped by 2.24%, trading at $ 95,000, while Ethereum plunged 14%. The main altcoins, including XRP, Solana and Binance Coin, also dropped from 10 to 15% in the middle of the larger market.
During the COVVI-19 crash on March 13, 2020, the global cryptography market saw its worst day correction, plunging 39.6%. Total market capitalization increased from $ 223.74 billion to 135.14 billion dollars overnight. Bitcoin also recorded its drop in the largest price of -35.2%, while Ethereum suffered an even higher drop of -43.1% in the same period. The accident was triggered by a general panic while investors fled risk assets in a context of global uncertainty.
Analysts highlight the growing fears of a world trade war as a key trigger of the liquidation cascade.
According to QCP analysts, the Trump administration has implemented 25% of prices on Canadian and Mexican products, in parallel with a 10% levy on Chinese imports. Canada has responded rapidly, imposing prices of 25% at $ 106 billion in American goods, Mexico should follow suit.
Treasury yields have been anchored by bear – 2 -year yields increased while yields at 10 years have dropped, signaling fears of inflation and long -term economic risks.
Actions have dropped on the world markets, while soaked gold and oil has caused in response to uncertainty. Crypto took the hardest shot, acting as a high -risk asset proxy before the opening of the American markets.
“This decorrelation strengthens the opinion that today’s risk movement is motivated by the rebalancing of the cross portfolio rather than by a unique event,” noted QCP analysts. “Expect continuous volatility while Trump is preparing to negotiate with Canada and Mexico tonight, while saying that the prices on the EU” happen definitively. “
Ethereum saw $ 614.34 million in liquidations, 77.07% of them were long positions.
Long positions eliminated $ 473.49 million while short positions liquidated $ 140.85 million
