More than 225,000 traders were liquidated in the last 24 hours as Bitcoin (CRYPTO: BTC) lost 9% of its value.
What Happened: The market-leading cryptocurrency experienced a sharp selloff early morning Thursday, falling from $46,600 to $42,800.
According to liquidation data from Coinglass, $896 million in crypto was liquidated in the last 24 hours.
Liquidations occur when a trader has insufficient funds to keep a leveraged position open, leading the crypto exchange to forcefully close his/her position after a loss of the trader’s initial margin.
The single largest liquidation took place on Bitmex on a Bitcoin/USD trading pair. The trader in question lost $10 million on that single order.
Bitcoin liquidations in the last day exceeded $332 million, followed by Ethereum (CRYPTO: ETH) which saw $223 million in liquidations.
Solana (CRYPTO: SOL) saw $20 million in liquidations, while Dogecoin (CRYPTO: DOGE) saw $14.3 million.
A total of 88.48% of liquidations were long, meaning the majority of liquidations across crypto exchanges were from traders betting on crypto prices going higher.
At the time of writing, market sentiment was fearful with the Bitcoin Fear and Greed index in the “extreme fear” zone.
Photo by 愚木混株 cdd20 on Unsplash.