$800 million liquidated from leveraged traders due to cryptocurrency market volatility

Over the past turbulent 24 hours marked by extreme volatility, the cryptocurrency market has experienced a historic sell-off. Nearly $800 million was liquidated on each of the futures positions, whether long or short.

This staggering number represents the largest daily value of cryptocurrency transactions recorded so far in 2024. According to data from Coinglass.

Cryptocurrency traders suffer losses worth $800 million

This unprecedented market activity was driven by the significant rise in the value of major cryptocurrencies. Where the price of Bitcoin reached...Ethereum At long-term highs not seen in years.

Pink coin Bitcoin at nearly $64,000, the highest since November 2021, while Ethereum neared $3,500, hitting a two-year high. This increase contributed to massive liquidations amounting to $800 million. Leveraged traders find themselves caught in a spiral of price fluctuations.

This is the largest liquidation event since August 18, 2023, when over $1 billion was lost in liquidations. This was just after the news that Elon Musk had sold $373 million worth of Bitcoin from his SpaceX holdings.

Typically, liquidation events in the cryptocurrency market tend to disproportionately affect long or short positions. However, this event was unusual in that the liquidations were approximately equal in value between buy and sell transactions.

Watching a Cryptocurrency Trader Mage The devastation unfolds, he joked: “Everyone has a plan until the liquidation surprises them and destroys them.” »

Experts attribute this scarcity to price volatility caused by external factors, including a service outage on major cryptocurrency exchange Coinbase.

Coinbase blame game

Coinbase, a leading cryptocurrency trading platform, experienced significant downtime, leaving many users unable to access their accounts or execute trades during critical moments of price action. Reports of users seeing zero balances and transaction errors flooded social media, adding to panic and exacerbating market movements.

The Coinbase team responded quickly to the issues, reassuring users that their assets were safe and working hard to resolve the issue. Coinbase has attempted to quell unrest among its user base,

“Our team is investigating this matter and will provide an update soon. The exchange has announced that your assets are safe.

After starting at $57,074, the cryptocurrency saw a massive 12.66% surge, peaking at an intraday high of $64,300 before undergoing a correction.

The volatility is a stark reminder of the risks inherent in the cryptocurrency market and the operational challenges exchanges face in maintaining service stability amid unpredictable market movements.