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.
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.
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.
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.