The crypto market lost more than $120 billion in the last 24 hours after Bitcoin dropped nearly 10%. The world’s largest cryptocurrency jumped above $61,000 on Sunday. The recent volatility in the crypto market has caused the liquidation of billions of dollars worth of long cryptocurrency positions.
According to the latest data published by crypto analytics firm, Bybt.com, nearly $2 billion worth of long Bitcoin positions got liquidated in the last 24 hours. The overall liquidation number for long crypto positions stands at around $2.52 billion.
Bybt.com mentioned that a total of 234,300 traders were liquidated in a single day as the biggest Bitcoin liquidation order happened on Huobi with a value of $18.94 million. The world’s second-largest crypto-asset, Ethereum saw the liquidation of nearly $250 million worth of long ETH positions.
“In the last hour alone, nearly $500 million in Bitcoin longs got liquidated, this is a historic level. There is excess greed in the system, with 60% of contracts levered 20 times or more. Long liquidations are an artifact of the current bull market,” Jan & Yann, Co-Founders of Glassnode, mentioned on Twitter yesterday.
Volatility in Bitcoin
High leverage and extreme crypto volatility are playing a major role in the liquidation of long and short cryptocurrency positions. The volatility in the crypto market is higher than in the stock market. JPMorgan, one of the leading investment banks in the world, recently published a research note and mentioned that the extreme volatility in Bitcoin is a massive issue for large organizations. Crypto traders around the world are leveraging their positions to take advantage of the trading opportunities, but high leverage is accelerating liquidation as well.
The world’s largest crypto asset saw a dip in the last 24 hours after registering an all-time high earlier this week. As of writing, Bitcoin is trading near $53,500 with a total market cap of more than $1 trillion. The market dominance of BTC dropped from 62% to 60.5% within a single day.