The crypto market has been bouncing back and forth in the past few days. Over 124,003 traders saw more than $421 million liquidated in a 24-hour period as prices tumbled wildly throughout yesterday and today.

The crypto market is falling to new lows not seen since November. With a total loss of $421 million, Bitcoin (BTC) accounted for most of the losses, followed closely by Ethereum (ETH). 

Related Reading | TA: Ethereum Bears Aim Big After Recent Breakdown Below $2.5K

Most of these liquidations occurred on Binance, FTX, and Okex. As a result, Bitcoin traders lost 4,340 BTC worth $144 million, Ethereum traders lost 50,180 ETH worth $121.81 million, and LUNA traders lost 264,350 coins worth $15.99 million.

Other major cryptocurrencies showed relatively lower losses. Futures tracking Tron’s TRX saw $8 million in losses, followed by Solana’s SOL at $7.54 million. Dogecoin’s DOGE showed $7.24 million while Stepn’s GMT losses reached $6.93 million. Among other alternative currencies, Ripple (XRP) futures saw a loss of $6.1 million, followed by Appcoin (APE) at $5.95 million.

The 12 hours of liquidation figures show the losses of $286 million from all major cryptocurrencies.

According to Coinglass data, traders lost 77.5% ($327 million) of the total liquidation amount betting on longs. $129 million liquidations happened on Okex, while traders on FTX lost $107 million. Binance traders are on 3rd, losing $94 million in liquidations.

In case anyone isn’t aware of what futures “liquidations” are, it’s best to take a brief look at the workings of margin trading.

When an exchange closes a leveraged position, it’s called a liquidation. This happens when there is a partial or total loss of the trader’s initial margin. Liquidations happen mostly in futures trading. Because that only tracks asset prices, unlike spot trading, where traders own the actual assets.

If we look at cryptocurrency prices from November 2021, they have gone down a lot. The total value of all cryptocurrencies has dropped by almost 50%. In November 2021, the total crypto market capital reached $2.79 trillion while now it is at $1.49 trillion according to Tradingview.  Bitcoin market cap in November 2021 crossed $1.26 trillion, which is about 45% of the total market cap.

Related Reading | Bitcoin Carnage Continues As BTC Disintegrates To $34K

It is unclear what caused the sell-off, but it is happening during a downturn that is affecting all markets, including cryptocurrencies.

This suggests that the crypto market is becoming more like traditional markets. The S&P 500 and other big tech firms have been more strongly related to crypto in the past year. That is why the crypto market is more tightly connected to the global economy.

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