The cryptocurrency market has experienced a severe downturn, leading to major losses for many investors. Predictions of a summer slowdown have been surpassed, resulting in significant financial repercussions. Futures trading has been hit hard, with $400 million lost in long positions and over 165,000 positions closed. The declines in Bitcoin and Ethereum have triggered substantial losses in other altcoins as well.
How Are Cryptocurrencies Coping?
CoinGlass data reveals that $440.24 million worth of positions were liquidated in the past 24 hours. Ethereum was particularly affected, accounting for $378.52 million of the liquidations predominantly in long positions. Losses from short positions amounted to over $60 million.
Top investors in decentralized finance (DeFi) and cryptocurrencies incurred losses of $68.44 million, while Ethereum short sellers saw $16.27 million in losses. The largest single liquidation involved $6.44 million in a USDC pair ETH transaction on Binance.
Why Did Bitcoin Suffer?
According to CoinGlass data, the “other” cryptocurrency group had the second largest liquidations, while Bitcoin ranked third. Bitcoin investors, both bears and bulls, lost a combined $69.83 million. The market shock led to a $136 billion drop in total market volume following a decline on June 17.
Key Takeaways for Investors
– Investors should closely monitor market trends and data from reliable sources like CoinGlass.
– Diversification of investment portfolios can mitigate risks from market volatility.
– Staying informed about significant liquidation events can help in quick decision-making.
– Understanding liquidation processes in futures trading can provide a strategic advantage.
Current Bitcoin Status
The overall market lost $136 billion, causing the Crypto Total Market Cap Index to plummet from $2.385 trillion to $2.249 trillion. Currently, Bitcoin is trading at $64,800 after a 0.69% drop, with a market cap reduced to $1.27 trillion. Notably, Bitcoin’s 24-hour trading volume surged by 80%, surpassing $37 billion, indicating heightened selling activity driven by market anxiety.