As the week comes to a close, the price of bitcoin has taken some interesting turns. The digital asset that was struggling to hold $20,000 finally broke out of this funk and was able to rally to the mid-$22,000. This rally naturally led to liquidations in the market and as time went on, these liquidations increased with the volatility that has followed this price recovery.
Over 65,000 Merchants Rekt
As of Friday morning, data from Coinglass shows that over 65,000 traders have been liquidated in the past 24 hours. The liquidation had risen after a quick recovery of bitcoin above $20,000 and by the end of the day, its value had risen to over $2,000. Traders were quickly caught and millions of dollars were liquidated in short positions.
Related Reading | Bitcoin funding rates are climbing as the price struggle continues
In total, there have been over $280 million in liquidations during the past day and they will continue to grow. Most have come out in the form of shorts with $214.74 million in the last day. However, long traders have not been spared from the attack of $67.35 million in the same period. The reason for the prolonged liquidation is that the digital asset peaked in the mid-$22,000s and has since lost around $1,000.
BTC declines to low $21,000 | Source: BTCUSD on TradingView.com
Bitcoin traders are naturally bearing the brunt of the liquidation. Data shows that 6,320 BTC have been lost in the past day. This translates to $135.69 million, with the largest single liquidation event taking place on the BTC-USD pair on Huobi crypto exchange totaling $3.86 million.
Altcoins Follow the Bitcoin Lead
Altcoins have maintained a close relationship with Bitcoin when it comes to liquidation trends. Altcoins like Ethereum have seen liquidations of millions of dollars in the past. The total number of ETHs has increased to 69,110 ETH, which is equivalent to a dollar value of $84.15 million.
Related Reading | Altcoins take lead as bitcoin struggles to hold above $20,000
Others that have seen large-scale liquidations include Solana (SOL) which has been making a splash in the NFT space recently. The Ethereum competitor had seen liquidations totaling $4.14 million for a total of 111,970 SOLs.
Others like GMT, AVAX and CRV have all registered above $3 million. While MATIC, XRP and SAND have seen liquidations of $2.85 million, $2.45 million and $2.17 million respectively.
Nearly half of the liquidations have been recorded in the last 24 hours alone, with a total of $137.96. The bulk of the liquidations continue to be shorts, but with the price of bitcoin in the current bearish trend, long liquidations are accelerating.
Featured image from MARCA, charts from TradingView.com
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