Bitcoin recently experienced a significant drop in price, falling below $59,000 for the first time since September 18. This sharp decline led to a wave of long liquidations across the cryptocurrency market, resulting in a total of $196 million in liquidations within a 24-hour period.
The digital asset had reached a local high of $64,400 at the beginning of the week but saw a steady decline, dropping to $61,200 by Thursday. Overnight, Bitcoin fell even further to $58,800 before bouncing back slightly to $60,700 at the time of reporting. Overall, the price of Bitcoin is down 5.8% from its recent high.
Data from Coinglass revealed that a total of 58,176 traders were liquidated in the past day, with Bitcoin accounting for the highest amount at $67.99 million. This was followed by Ethereum at $39.05 million, Solana at $8.39 million, and Sui at $5.85 million. Other cryptocurrencies made up the remaining $19.54 million in liquidations.
Interestingly, long positions were the most impacted by the liquidations, totaling $144.47 million in losses compared to $52.17 million in short positions. On exchanges like Binance, long liquidations made up over 90% of the total liquidations, with a single order valued at $10.51 million. Similar trends were observed on platforms such as OKX and Bybit.
The recent price drop and resulting liquidations underscore the high levels of volatility in the cryptocurrency market. Traders who had leveraged their positions faced significant losses as prices moved against them. This serves as a reminder of the risks involved in trading digital assets, especially when using leverage.
It is important for investors to carefully consider their risk tolerance and trading strategies in such a volatile market. Keeping a close eye on price movements and using risk management tools can help mitigate potential losses and navigate the ups and downs of the cryptocurrency market. As always, it is crucial to stay informed and make well-informed decisions when trading cryptocurrencies.