The cryptocurrency market is in turmoil today as both Bitcoin (BTC) and Ethereum (ETH) have experienced significant price drops, sending shockwaves across the financial community. As of this writing, Bitcoin has fallen to $26,298.74, marking a 9.04% decline in the last 24 hours, while Ethereum’s price has tumbled to $1,620.54, showing a 10.5% drop within the same period.

The sudden dip in prices has resulted in massive liquidations across various exchanges. Data reveals that in the last 24 hours, liquidations reached an astounding $992.12 million, affecting 166,688 traders. Binance, a leading cryptocurrency exchange, witnessed the largest single liquidation order for Ethereum, valued at $55.92M.

The 24-hour liquidation amount has skyrocketed to $996.6 million, marking a staggering 741.27% increase, indicating high volatility and a significant number of traders being forced to close their positions.

Coinglass data show that in the past 24 hours, a total of 167,465 traders were liquidated, with the total liquidation sum amounting to approximately $997.31 million. The largest single liquidation order was on Binance for ETHBUSD, valued at $55.92 million. The long and short ratio for liquidations stands at 46.11% and 53.89%, respectively. This suggests that while a majority of traders were betting on prices going up, a slightly higher number of traders were expecting a downturn.

Analyzing the liquidation data from major exchanges, OKX saw the highest percentage of long liquidations at 98.2%. In contrast, Deribit had a dominant short liquidation rate of 56.32%. Binance, one of the world’s largest exchanges, also had a significant long liquidation rate of 91.97%.

The plunge also occurred as news broke that Chinese real estate powerhouse Evergrande had filed for Chapter 15 bankruptcy in a U.S. court. The financial instability of the company and its potential ripple effects on the global economy have been a topic of intense scrutiny and apprehension for investors.

Ultrasound.money‘s observations shed light on a notable amount of Ethereum being burned. The burn rate is approximately 1.67 ETH/min, and leading DeFi platforms like Uniswap are major contributors to this phenomenon.

Lastly, it’s essential to recognize that both traditional and crypto markets are susceptible to global macroeconomic factors. The ongoing economic challenges worldwide play a significant role in shaping investor sentiment and market dynamics.

Bitcoin’s current price is down 61.63% from its all-time high (ATH) of $68,692.14, reached on November 10, 2021. Similarly, Ethereum has plummeted 66.55% from its ATH of $4,864.11, also recorded on the same date.

Amid these liquidations, other cryptocurrencies such as XRP, LTC, and DOGE have also seen significant liquidation values. Exchange-wise, OKX, Deribit, Binance, and Huobi are leading in terms of liquidation amounts.

While the immediate future of the cryptocurrency market remains uncertain, it is essential for investors to stay informed and exercise caution. Given the volatile nature of cryptocurrencies, such market fluctuations, while unsettling, are not unprecedented.

The post Market sees $1B in liquidations as Bitcoin, Ethereum plunge appeared first on CryptoSlate.

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