The recent crypto liquidation is affecting thousands of traders as it reaches $120 million.
Although the cryptocurrency market has been recuperating from recent lows, this does not bode well for all. According to the Liquidation Heatmap provided by CoinGlass, thousands of cryptocurrency traders have experienced substantial losses in the last twenty-four hours, with a cumulative liquidation amounting to over $120 million.
The prices of Bitcoin (BTC) and Ethereum (Ether) are higher than $67,000 and $3,100, respectively, following their respective lows of $57,000 and $2,800 in April. The previous market downturn was ascribed to geopolitical tensions in the Middle East and market corrections that ensued after Bitcoin’s halving in 2024.
In spite of this recovery, 59,032 traders were forced to liquidate their positions, bearing the burden of these market fluctuations.
OKX Capitalizes on Market Volatility
Most losses were incurred by traders who had opened long positions in anticipation of BTC and Ether appreciating. In aggregate, these sanguine investors incurred a loss of approximately $87.05 million. Conversely, investors who maintained short positions, anticipating the possible depreciation of these digital assets, incurred losses amounting to roughly $28.31 million.
Traders of Bitcoin incurred a daily loss of approximately $23.15 million, whereas those who placed bets on the price of Ethereum incurred a cumulative loss of $19.70 million.
Likewise, cryptocurrency speculators who placed bets on Solana (SOL) incurred losses of $8.84 million, whereas other digital assets accumulated a total loss of $23.24 million.
According to CoinGlass’s Liquidation Heatmap, the largest single liquidation order occurred on the cryptocurrency exchange OKX; the company lost approximately $4 million in a single order over the past twenty-four hours.
More than $13 million was liquidated within an hour
The cryptocurrency market continues to be highly turbulent as participants suffer substantial financial losses.
Approximately 60,000 traders incurred losses totaling $56.33 million in the preceding twelve hours, of which $14.43 million was attributable to Bitcoin, $7.14 million to Ether, and $10.23 million to other cryptocurrencies. Approximately $29.36 million has been liquidated in the preceding four hours, of which long speculators contributed $10.79 million and short positions $18.58 million.
CoinGlass’s Liquidation Heatmap indicates that up to $13.22 million has been wiped out in the last sixty minutes, with short traders accounting for approximately $12.85 million of these liquidations.
Nothing new
In the interim, market fluctuations have made liquidations commonplace on the cryptocurrency exchange, with traders frequently losing substantial quantities.
As an illustration, Bitcoin experienced a resurgence from a two-year low in March and reestablished its previous peak of $69,000. Within twenty-four hours, an estimated $1 billion was liquidated from the market.
Nevertheless, the pattern has persisted as investors incur substantial losses in the capricious cryptocurrency market. The cryptocurrency Bitcoin reached an all-time peak of $73,000 on March 14, shocking the industry.
The surge signified the first occasion the cryptocurrency asset attained a fresh milestone prior to the recently concluded Bitcoin halving event. As a consequence of the price increase, an additional $360 million was erased from the market.
Due to liquidations, this month has been especially trying, with millions lost. A sum of $360 million was liquidated on May 2. A subsequent substantial liquidation befell 71,245 merchants two weeks later, on May 13, when an estimated $130 million vanished from the market.
