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$1B Liquidated in 24h Following BTC Price Decline

Dawn greeted cryptocurrency enthusiasts with an alarming wake-up call this Friday, as the digital realm faced one of its steepest sell-offs in recent history. But what were the forces behind this dramatic downturn, and what does it spell for the future?

Breaking Down the Numbers

Bitcoin and Ethereum Lead the Decline

Both Bitcoin (BTC) and Ethereum (ETH), the crypto heavyweights, plunged to a 2-month low, shaking the financial fabric of the digital asset space. The immediate fallout? Liquidation of a staggering amount in leveraged trades. Coinglass data reveals that within a mere 24-hour window, 176,752 traders faced liquidations, with a significant 90% of these occurring in the past 12 hours alone.

24h Liquidation - Source: Coinglass
24h Liquidation – Source: Coinglass

Spotlight on Big Losers

Major Liquidation Events

Among those feeling the pinch, two substantial liquidations on Binance stood out. One trader’s ETHBUSD contract was mercilessly liquidated at $1,434.37, translating to a jaw-dropping loss of $55.9211 million. A counterpart on the BTCUSDT contract didn’t fare much better, parting with close to $10 million.

The Catalysts Behind the Crash

SpaceX’s Bitcoin Write Down

Adding fuel to the fire, SpaceX’s recent decision to write down the value of its Bitcoin holdings by a whopping $373 million over the past two years created a climate of anxiety.

Macroeconomic Factors

Coupled with other macroeconomic forces, the downturn wasn’t just an isolated incident. Factors such as collapsing foreign currencies, concerns about China’s economy, escalating bond yields, and aggressive stances from the U.S. Federal Reserve have all played a part in this crypto whirlwind.

Where Do We Go From Here?

Current State of the Market

As of now, Bitcoin hovers around the $26,492 mark, representing a 7.3% drop over 24 hours. Ethereum isn’t faring much better, having slipped below the $1,700 threshold. With the total crypto market capitalization teetering close to the crucial $1 trillion mark, it’s evident that stability remains elusive.

This tumultuous chapter in the crypto saga serves as a stark reminder of the market’s volatility. As traders, stakeholders, and enthusiasts grapple with these developments, the essential question remains: is this the beginning of a prolonged downturn or merely a market correction paving the way for future growth?

Key Points

What caused the massive crypto dip?

Several factors including macroeconomic pressures, concerns about China, and high-profile decisions such as SpaceX’s Bitcoin write-down have collectively spurred this downturn.

How many traders were affected by the recent liquidations?

A total of 176,752 traders faced liquidations in the past 24 hours.

Are other cryptocurrencies besides Bitcoin and Ethereum affected?

Yes, other major cryptocurrencies, excluding stablecoins, also saw significant declines, underscoring the market-wide impact of the current conditions.


Greetings, I go by the name of Flavien - a devoted supporter of cryptocurrency and a tech aficionado who has been keeping track of the developments in the world of blockchain and digital currencies since 2019. The potential of decentralized digital currencies to revolutionize our financial systems has captivated me, and I'm constantly exploring the most recent trends and advancements in this ever-evolving industry. As a content creator for Krypto Channel, my aim is to deliver informative and engaging articles that shed light on all aspects of the crypto world. Whether you're a seasoned investor or simply curious about blockchain technology, I am here to keep you updated on the latest happenings and trends. Being part of this lively and dynamic community is an honor, and I am thrilled to share my passion for cryptocurrency and blockchain with all of you.
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