Bitcoin lost the $25,000 level, while ether briefly slid to nearly $1,200.
Crypto-tracked futures lost over $1 billion in the past 24 hours, weighed down by a weak sentiment for bitcoin and other cryptocurrencies amid a weak global economic outlook, data shows.
Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. It happens when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open).
The losses came as bitcoin lost a major support level at $25,000 on Monday, with crypto market capitalization reaching levels previously seen in January 2021. Major cryptocurrencies declined by an average of over 15%, as reported.
Bitcoin accounted for over $532 million of all liquidations, followed by ether at $317 million and Solana’s SOL tokens at nearly $20 million. Futures tracking Cardano’s ADA, Stepn’s GMT, and Binance ecosystem tokens BNB saw over $6 million in losses each, with some 213,000 individual trading accounts seeing liquidations in the past 24 hours.
Longs, or traders betting on higher prices, saw over $510 million in liquidations. Shorts, or bets on lower prices, saw $554 million in losses, suggesting futures traders added to market volatility and affected traders almost equally in either direction.