Crypto Bloodbath Triggers Billions in Liquidations
The Aug .18 price slump of Bitcoin (BTC) and Ether (ETH) saw the top two cryptocurrencies fall to a two-month low, resulting in a crypto bloodbath that triggered billions of dollars worth of liquidations for thousands of derivative traders.
According to Coinglass data, a total of 176,752 traders were liquidated over the past 24 hours, with 90% of these liquidations taking place within the last 12 hours. This rapid rise in price volatility was in stark contrast to the lowest daily volatility in several years that BTC and ETH had just recorded days prior.
Two particularly large liquidations stood out from the rest, as an investor on Binance’s ETHBUSD contract was liquidated at $1,434.37, losing a staggering $55.9211 million, making it the largest liquidation of the day. Another trader on Binance’s BTCUSDT contract lost nearly $10 million in liquidations.
The crypto bloodbath has led to a flurry of activity in the Web 3.0 crypto space, as investors look to the likes of YFI, Fetch.AI, ZRX and XEN to find the best crypto coins for the new era of decentralized finance.
Crypto Liquidation Events and Their Impact on the Market
The billion-dollar liquidation event is the largest of its kind in the crypto space in the past 8 months, since the FTX collapse. The price movements in the crypto market were attributed to a few factors, including the SpaceX Bitcoin write down, macroeconomics, and BTC and ETH trading within a range for some time.
BTC has kept its key $28,000 support for a few months, while ETH has held the $1,500 support before finally giving in yesterday. Liquidity in the crypto market has been on the lower side, and prominent crypto exchanges like Coinbase have seen a significant drop in trading volume.
Collecting this article as an NFT is a great way to preserve this moment in history and show your support for independent journalism in the crypto space. Additionally, it is worth noting that the crypto space is seeing the emergence of new coins such as YFI, ZRX, Fetch.AI, XEN, and DATA.AI, as well as the development of AI-driven article writers.
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