Crypto Market Sees Massive Liquidations Amid Ethereum and Bitcoin Downturn

By: Isha Das

The cryptocurrency market has been experiencing significant turbulence, with crypto liquidations surpassing $200 million as major tokens like Bitcoin and Ethereum plummet. Over the past 30 days, both Bitcoin and Ethereum have seen a 12% decline, raising concerns among traders and investors.

In a recent 24-hour trading session, the market witnessed nearly $200 million wiped out in liquidations, as Bitcoin's price fell below $61,000. This sharp decline has resulted in substantial losses for many investors and traders, as it triggered a wave of liquidations predominantly from long positions, which indicated that many expected the market to rally.

According to data from Coinglass, around 59,816 traders were liquidated, totaling $170.72 million. Bitcoin traders faced approximately $45.76 million in liquidations, while Ethereum and Solana traders saw losses of $44.55 million and $11.09 million, respectively.

The liquidations primarily took place on major exchanges such as Binance, OKX, Huobi, and Bybit. Binance traders bore the brunt, with $74.77 million in liquidations. OKX, Huobi, and Bybit also experienced significant liquidations of $54.29 million, $19.28 million, and $12.93 million, respectively.

Despite the downturn, some market analysts remain optimistic about Bitcoin’s future. Notable figures in the crypto community, such as PlanB, have reaffirmed their belief in an ongoing bull market, citing underlying on-chain metrics that do not indicate a prolonged bear market. Additionally, crypto analyst Ali suggested on Elon Musk's social media platform, X, that it might be an opportune time to buy Bitcoin in anticipation of a market rebound.

Prominent Bitcoin advocate Samson Mow emphasized the importance of Bitcoin in addressing fundamental economic issues, arguing that fixing monetary systems could lead to broader economic recovery. His views underscore Bitcoin’s potential to not only recover but also achieve new financial heights.

These developments highlight the heightened volatility and risks associated with the cryptocurrency market, urging traders to proceed with caution.