In an intense 24-hour period, cryptocurrency traders have weathered over $1.04 billion in liquidations due to a sudden upheaval in market volatility. This event was triggered primarily by Bitcoin's erratic price movement, which dropped from $27,600 to $25,600 before bouncing back to $26,500 within hours.
The sudden volatility has sent shockwaves throughout the crypto market, impacting both long and short futures traders. In fact, data reveals that crypto long trades accounted for a staggering 90% of total liquidations as Bitcoin (BTC) and Ethereum (ETH) slumped.
Breaking down the $1.04 billion debacle, long positions accounted for a significant $836 million, leaving shorts at $205 million.
The largest chunk of these liquidations occurred on OKX, one of the leading crypto exchanges. A staggering $308 million in long positions were liquidated on OKX within this tumultuous period. Binance followed closely with the liquidation of $189 million in bullish positions.
DeFi not spared from the liquidation wave
Yesterday's price plummet was not just a centralized market narrative. The decentralized finance (DeFi) sector, which has been gaining traction, was also jolted. Liquidations in this domain soared to a yearly high, reaching over $75 million, with the drop of ETH to sub-$1600 levels, as revealed by Parsec's data.
If this wasn't alarming enough, there's approximately $270 million in collateral across the DeFi spectrum that stands vulnerable. Should Ether's value sink further beneath the $1500 mark, these funds could very well be next in line for liquidation.
