Crypto Bloodbath: Over $500 Million Liquidated As Bitcoin Slides To $92K – Report

Christian Encila

6 months ago

2 mins read

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In the last few days, there have been big changes in crypto land. In just 24 hours, more than $550 million was liquidated. When Bitcoin fell to its weekly low, it caused a flood of sell-offs that caused about 170,000 traders to lose money on their accounts.

Coinglass reports such tremendous losses to be placed at $118 million in BTC longs, $54 million in ETH longs, and even $25 million in Dogecoin long positions.

This surge in liquidations, in conjunction with a decrease in market capitalization and trading volume, emphasizes the volatility that traders have come to anticipate. This is perceived by analysts as a component of a more extensive pattern of corrections that have occurred in the wake of Bitcoin’s recent rally to near-record levels.

Bitcoin Dominance & Liquidation Trends

Bitcoin’s dominance remains robust, with a current market capitalization of $3.23 trillion, which accounts for over 56% of the total crypto market. The highest liquidation of the day was a $4.67 million BTC/USDT exchange on Binance, which is indicative of the high stakes involved in leveraged trading.

Additionally, altcoins were not spared. Significant declines were observed in tokens with a smaller market capitalization, with the broader market losing approximately $100 million.

Some analysts think this is just another usual correction, following the hefty close to 44% rise in Bitcoin price since early November. At present, the crypto Fear and Greed Index stands at 82, suggesting that the prevailing dominance in the market is still “Extreme Greed.”

Ethereum And Altcoins Maintain Their Poise

Ethereum remains resilient, despite the fact that it was not spared from the day’s losses. The uncertain sentiment surrounding the second-largest cryptocurrency was underscored by a combination of long and short liquidations in ETH positions.

In the interim, altcoins such as Dogecoin, which were frequently bolstered by meme-driven enthusiasm, experienced the repercussions of market corrections, a warning to traders who were seeking rapid profits.

Bitcoin market cap currently at $1.83 billion. Chart: TradingView.com

An industry analyst named Miles Deutscher noticed that more traders are reactivating their wallets after not using them for months. They are doing this because they are interested in the possibility of altcoins and Bitcoin’s strong performance. As the market continues to follow its usual trends, this increase in activity could lead to both growth and volatility.

The Road Ahead For Bitcoin

At $92,801, Bitcoin still lags somewhat behind its all-time high of $99,750, attained earlier this month. The next action divides analysts; some believe the market is ready for consolidation prior to another surge beyond $100,000. Others caution that overlevers may cause short-term greater volatility.

Investors are keenly monitoring market mood and macroeconomic factors. Although current conditions may promote bullish momentum, the crypto market’s severe price volatility and huge leverage risks remind us of its unpredictable nature.

Featured image from DALL-E, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.