The two leading cryptos, Bitcoin and Ethereum suffered the most with $122.6 million and $234.2 million in liquidation respectively.
The crypto market has been on a constant decline since Bitcoin hit its $69,000 all-time high and even broke key support points recently due to a mass sell-off triggered by the collapse of the Terra ecosystem. A recent report also indicates that traders have been hit by a serious liquidation amounting to $523 million in the last 24 hours. This comes in a period many investors have been left in a state of uncertainty about whether this is the right time for entry. The two leading crypto assets Bitcoin and Ethereum suffered the most with $122.6 million and $234.2 million in liquidation respectively.
STEPN also suffered from the liquidation with $23.76 million lost, followed by Solana with $11.51 million and Sandbox with $8.56 million. According to reports, close to 143,000 traders were heavily affected. With the breakdown of the bloodbath, traders who went long lost 415.3 million, against $106.35 million lost for those who went short.
Heavy liquidations are seen occasionally. In March, there was a $365 million liquidation in just 24 hours with Ethereum amounting to over $100 million of it. The most recent one happened on May 8. Out of the $260 million liquidated, Ethereum suffered the most with $43 million. Also, 48% of the long liquidations happened on OKX, 24% happened on Binance and 10% happened on Bybit.
According to the CoinMarketCap data, Ethereum is down by nearly 4% in the last 24 hours, and 13% down in the last seven days, trading at $1761 as of press time. Bitcoin is also down by 0.34% and down by 4.6% in the last seven days. It is currently trading at $28,936.
For Ethereum, it is reported that its position could be bizarre if it loses the pivotal support at the current levels. Losing the support will see the price dropping to between $1,300 and $1,500 or even lower. A similar price was seen in July 2021.
While establishing the reason for the drop, it was found that this could be a lack of demand for Ethereum block space according to data from analytics firm Glassnode.
“Block space is the amount of transactional data that can be included in each block, with users paying “gas” fees for doing so. Lower block demand generally means a fall in user activity on any particular network,” Coindesk explains.
It was reported that the network fees and prices have been trending lower since December. Recently, it reached multi-year lows.
Analytics firm Coinalyze earlier disclosed that Thursday’s Ether volatility was linked to the increase in open interest in Ether futures. Open interest is said to be the amount of unsettled futures in the market. When it increases, it signifies that traders are opening long or short positions.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
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