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Crypto Bulls Rack Up $580M Liquidations as Bitcoin Drops 8%, Ether, Solana, Dogecoin Crash | Currency News | Finance & Business News
- Bullish trades on bitcoin and ether have seen losses of more than $380 million overall.
- The largest single order liquidation was on Binance: an ETH transaction valued at $18.4 million.
Major cryptocurrencies have plunged as much as 20% in the past 24 hours, as moves from a wallet linked to Mt. Gox spooked traders in early Asia, sending the market into a downward spiral averaging 10%.
Bitcoin {[BTC}}droppedmorethan8%brieflyfallingbelow$54000beforerecoveringslightlyinamovethaterasedallgainssinceFebruaryEther{{ETH}}droppedmorethan10%Solana’sSOLandCardano’sADAfell8%whiledogecoin{{DOGE}}divednearly18%[BTC}}fell8%tobrieflybelow000beforeslightlyrecoveringinamovethaterasedallgainssinceFebruaryEther{{ETH}}droppedmorethan10%Solana’sSOLandCardano’sADAfell8%whiledogecoin{{DOGE}}divednearly18%[BTC}}èscesodell’8%scendendobrevementesottoi000primadiriprendersileggermenteinunamossachehacancellatotuttiiguadagnidafebbraioEther{{ETH}}èscesodioltreil10%SOLdiSolanaeADAdiCardanosonoscesidell’8%mentredogecoin{{DOGE}}ècrollatodiquasiil18%[BTC}}fell8%tobrieflybelow000beforeslightlyrecoveringinamovethaterasedallgainssinceFebruaryEther{{ETH}}droppedmorethan10%Solana’sSOLandCardano’sADAfell8%whiledogecoin{{DOGE}}divednearly18%
Coinalyze data shows that this caused more than $580 million in liquidations tied to long positions, or bets on higher prices, in one of the largest such events so far this year. Bullish bets on bitcoin and ether together saw more than $380 million in losses.
The largest single order to liquidate was on Binance, an ETH trade valued at $18.4 million. Meanwhile, open interest, or the number of unsettled futures bets, fell 12%, indicating that money was leaving the market.
Liquidations occur when an exchange forcibly closes a trader’s leveraged position due to a partial or complete loss of the trader’s initial margin. This happens when a trader fails to meet the margin requirements for a leveraged position (does not have enough funds to keep the trade open).
The moves came as the defunct exchange Mt. Gox moved large amounts of BTC to a new wallet, potentially preparation for creditor reimbursements. Mt. Gox is expected to begin distributing assets stolen from customers in a 2014 hack this month, after years of delayed deadlines. The refunds will be made in bitcoin and bitcoin cash and could eventually add selling pressure to both markets, as previously reported.
Trading firm QCP Capital said in a Thursday broadcast on Telegram that it expects the market to be weak in the coming months: “We expect a weak Q3 for BTC as the market remains uncertain about supply from the Mt. Gox release.”
This story originally appeared on Coindesk