In the last 24 hours, cryptocurrency exchanges forced the closure of leveraged positions worth over $300 million as Bitcoin and Ether experienced sharp drops. The abrupt decline in Bitcoin’s value below $35,000, which was more than 5% below its recent peaks, set off the enormous liquidations. Just $121 million in Bitcoin trades were liquidated during this price spike.
The second-largest cryptocurrency, ether, did even worse, with $64.1 million in liquidated ETH positions following its drop below $2,000. Of all the altcoins, Solana’s native token SOL received the most liquidations, reaching $13.03 million. More than 90% of the liquidations were executed on exchanges like OKX, Bybit, and Binance.
Furthermore, OKX closed a lengthy Bitcoin trade for $9.45 million, executing the greatest single liquidation. The flash crash coincides with the release of US inflation statistics, which probably raised concerns about additional rate hikes by the Federal Reserve.
Despite the general bullishness among traders toward Bitcoin, the significant liquidations serve as a reminder of the market’s ongoing instability. The short-term outlook for the prices of Bitcoin and Ether is still unknown because long bets continue to dominate the market.