During this crash, nearly 300,000 traders liquidated their leveraged positions, according to Coinglass data. The impact was severe, withon BTC and Ethereum (ETH) falling more than 10% and 20%respectively. Traders who had bet on a prolonged bull market found themselves trapped in the liquidation of their positions.
In particular, the price of Bitcoin plummeted from $65,000 to $50,000 before recovering a few thousand dollars to $54,000, resulting in losses of over $315 million in less than 24 hours for those with long positions.
In contrast, traders with short positions on Bitcoin lost $62.23 million over the same period. Ethereum was no exception; traders with long positions lost $305 million, while those with short positions lost more than $50 million.
In total, long positions across all crypto assets lost over $930 million, while short positions lost $163.45 million. Approximately 80% of these liquidations occurred in less than 12 hours.
Cryptocurrencies: what the market is analyzing
Huobi exchange recorded the largest single liquidation, with one investor losing $27 million in the BTC/USD pair. Binance, the exchange with the largest trading volume, was the site of most of these liquidations, with significant movements also taking place in OKX, Huobi, ByBit and BitMEX.
Amidst this chaos, hackers found an opportunity to profit. With Ether falling from roughly $2,760 to $2,172, funds linked to the Nomad cryptocurrency bridge hack in August 2022 were used to acquire 16,892 ETH. These funds were then diverted through the Tornado Cash cryptocurrency mixer to hide their trail.
Forecasts suggest that Bitcoin’s fall could drag Ethereum to even lower levels. Researchers predict that if the price of Bitcoin drops to $42,000, Ethereum could hit $2,000This prediction is based on economic weakness, ongoing market structure, and on-chain data.
Despite previous accurate predictions, as the target of $63,160 for the Bitcoin halving in April, The cryptocurrency market remains extremely volatile and sensitive to new information. As such, investors should remain vigilant about fluctuations and conduct their own research in the face of market uncertainty.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
