Bitcoin’s recent dip from approximately $37,200 to $36,270, teetering on the edge of the $35,000 zone, might seem like a modest 2.5% decrease in value. However, the repercussions have been significant for the crypto market, particularly for nearly 100,000 traders who collectively lost almost $200 million in the last 24 hours.
Data from CoinGlass, a leading crypto derivative market tracker, reveals that the majority of the losses were incurred by long positions—traders who had bet on the market’s continued bullish surge. The liquidation impact on long positions was almost double that observed for their counterparts in the short category.
The most substantial single liquidation in the past 24 hours, valued at $3.86 million, occurred in the XBT/USDT pair. Notably, popular exchanges such as Binance, OKX, Bybit, Huobi, Bitmex, CoinEx, and Bitfinex witnessed significant losses, with nearly 80% of derivative traders opening long positions and subsequently facing liquidation.
Chinese reporter Colin Wu attributed the Bitcoin price dip, resulting in substantial losses, to a correction following five weeks of sustained positive performance in the crypto market.
Aside from the Bitcoin-induced market liquidation, traders of XRP, the third-largest altcoin, experienced a notable loss of funds within a shorter timeframe. Specifically, over $4.5 million was liquidated in the XRP futures market within four hours in response to a false report about BlackRock filing for an XRP ETF.
The misleading news triggered a rapid surge in XRP’s price from $0.65 to $0.73. However, the optimism was short-lived as it became apparent that the filing was fraudulent, leading to a swift reversal in XRP’s price.
The crypto community is closely monitoring these developments, underlining the susceptibility of the market to sudden shifts and the impact of misinformation on traders’ positions. As the market adjusts to recent events, the volatility in both Bitcoin and altcoins emphasizes the need for caution and informed decision-making in the ever-evolving crypto landscape.