Crypto Market Volatility Leads to $712 Million in Liquidations
Over the past 24 hours, the crypto market experienced heightened volatility, leading to liquidations totaling $712 million across 237,375 traders, according to Coinglass data.
Long Positions Hit Hardest
- Long positions accounted for 88.83% of the total liquidations
- $631.21 million in long positions were cleared compared to $79.35 million in short positions
- Bitcoin saw $130 million in liquidations, while Ethereum led with $150 million
Binance Leads in Liquidations
Binance recorded the highest activity, contributing $315.12 million in liquidations, including a single $17.74 million ETHUSDT liquidation, marking the largest order during this period.
Bitcoin’s price movements provided the backdrop for this liquidation surge, which began when the US stock market opened on January 8. Bitcoin traded around $102,500 early in the day before falling toward $100,000 as the US market opened.
Market Vulnerability Exposed
- The US stock market experienced a significant downturn on January 7
- All major indices closed lower, with the S&P 500 falling 1.1% and the Nasdaq Composite dropping 1.9%
- Bitcoin followed traditional equities and sharply declined, dropping below $100,000
The intense sell-off and liquidation cascade highlight market vulnerability, as traders miscalculated the strength of the correlation to the US market. Elevated trading volumes during the upward surge and subsequent sell-off suggest significant market activity, amplifying the impact of liquidations. The $102,393 resistance and $96,136 support levels, which Bitcoin has fallen below, remain critical markers as Bitcoin consolidates.
