Sat, August 20, 2022. ▪ 15:00 ▪
5
min of reading – up to
What is happening in the cryptocurrency market right now is nothing short of carnage. The main one corners are in free fall, altcoins also not going well. To make a point, market liquidations just crossed the $600 million mark. This in just 24 hours. What is actually happening?
Cryptocurrency crash and ATH liquidation
Out of the top 20 tokens in CoinGecko’s market capitalization ranking, only 4 tokens show a green curve. These are: Tether (USDT), Binance USD (BUSD), Shiba Inu (SHIB) and LEO token (LEO). We can still push our research further, but the observation will remain the same.
Bitcoin was trading at $21,236.19 at the time of writing, down 2.7% over 24 hours and 13% over 7 days. As for Ether, it was trading at $1,633.70 down 6.5% over 24 hours and 16.4% over 7 days.
But the worst was announced yesterday by Coinglass. This data indeed showed more than 168,000 transactions during the day. This resulted in a loss of $602.71 million for traders.
A few numbers to remember
From this Coinglass report comes some statistics that are not very favorable to cryptocurrencies:
- 168,586 transactions settled during the day on August 19;
- $602.71 million in recorded losses;
- 88.85% of these liquidations were long trades;
- $435.54 million in losses were realized in just 12 hours;
- $223 million is the total bitcoin liquidation during the same day, or 10,380 BTC;
- 98.88% of these liquidated BTC are similar to long trades;
- 48.47% of bitcoin liquidations were recorded on the Okex exchange;
- ETH liquidated $161.93 million;
- Ethereum Classic (ETC), Solana (SOL) and Filecoin (FIL) recorded losses of $25.63, $14.8 and $12.45 million;
- etc
DOGE, ADA, LInK, XRP and AVAX have also suffered from this history of mass liquidations. To say that SHIB was not part of this group. Is this a sign that he is walking on the moon?
The same liquidation statistics for the month of June?
Let us remind you that last June the limit of 600 million dollars was reached at the level of the cryptocurrency market. A June 19 CryptoPotato article gives us the details on this.
At that point, bitcoin fell below $20,000 for the first time, ending the streak at $17,500. The same data provider Coinglass periodically advanced almost $100 billion lost in the entire crypto market.
In addition, the number of liquidated traders was 160,000 on a 24-hour scale. The $600 million liquidated during this period was mostly bitcoins and ethers: $300 and $200 million, respectively.
Let’s not forget that the crypto market has been worse before. Nairametrics reminds us of the liquidation worth $881 million at the beginning of the year. At the time, bitcoin was trading at $40,000. You probably already understood the logic of these losses. Indeed, liquidations are often followed by falling prices, transfers into the red from major cryptocurrencies and altcoins. However, these assets have the power to be reborn every time they are destroyed.
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The blockchain and crypto revolution is underway! And on the day when the effects are felt on the world’s most vulnerable economy, against all hope, I will say that I had something to do with it.
