Cryptocurrency Market Experiences Significant Liquidation Wave
Nearly $150 million in leveraged crypto long positions were liquidated in an hour as Bitcoin, Ethereum, and XRP fell, with total daily liquidations topping $464 million. The sudden drop in cryptocurrency values led to a significant wave of liquidations, affecting over 137,000 traders.
The liquidation wave occurred in two hourly waves, with approximately $88.23 million in long positions being liquidated around 7:00 a.m. UTC, followed by about $57.02 million at 8:00 a.m. UTC. According to market data, cryptocurrency exchange Hyperliquid recorded the highest number of liquidations at $45 million, including the largest single liquidation order worth $3.63 million.
Breakdown of Liquidations by Cryptocurrency
The total cryptocurrency liquidations reached $464.44 million in the last 24 hours, with Bitcoin accounting for $66.53 million in liquidations, almost double the $33.78 million recorded by Ethereum. XRP, which recorded more than $6 million in liquidations in the same hourly period, fell 6.8%.
The liquidations followed net daily withdrawals totaling $486 million from U.S. spot Bitcoin exchange-traded funds the day before, marking the largest single-day outflow since Nov. 20, according to ETF data. This significant outflow contributed to the decline in cryptocurrency values, leading to the subsequent liquidation wave.
Market Impact and Analysis
Bitcoin (BTC) was down 1.7% on the daily chart, while Ethereum (ETH) fell 2.8%. The broader cryptocurrency market lost 2.19% in value during the period. The sudden drop in cryptocurrency values highlights the volatility and risks associated with investing in the cryptocurrency market.
According to market experts, the liquidation wave was triggered by a combination of factors, including the significant outflow from Bitcoin exchange-traded funds and the overall market sentiment. The cryptocurrency market is known for its volatility, and investors should exercise caution and conduct thorough research before making investment decisions.
For more information on the cryptocurrency market and the recent liquidation wave, please visit https://crypto.news/hyperliquid-leads-150m-crypto-long-liquidation-wave-as-btc-dips/.
