58,200 traders were liquidated, with mostly long traders suffering losses
The ongoing market sell-off for leveraged crypto traders has resulted in approximately $149 million in liquidations over the past 24 hours. According to data from Coinglass, 58,200 traders were liquidated, with most long traders losing out on most exchanges.
In topsy-turvy trade, Bitcoin and other cryptocurrencies surged early on Tuesday before falling sharply. The largest digital coin by market value rose more than 7% at one point on Tuesday to reach $20,385. However, the gains were temporal and the declines were perpetuated until the early hours of Wednesday.
At the time of publication, bitcoin, the largest cryptocurrency by market cap, was trading down 7% at $18,719. Ethereum was also exhibiting a loss of 7% in the same time frame. Several altcoins were trading significantly lower in the last 24 hours, with XRP and LUNC losing over 10%.
Bitcoin’s rise and fall came as investors drew back owing to inflation and recession fears that have dogged asset markets of all sorts for months. Investors also considered Fed chair Jerome Powell’s speech on crypto regulation. In light of its limited influence on the real economy, decentralized finance (DeFi) regulation, according to Powell, needs to be carried out “carefully and thoughtfully.”
Here’s Who Partially Sold BTC
After being rejected again below the crucial $20K level, Bitcoin has done a huge unrealistic loss for short-term investors. However, long-term holders have remained stagnant, highlighting their reluctance to spend their coins. According to Glassnode, this suggests that much of the volatility of the bitcoin market is tied to the short-term holder class.
Following the Great Miner Migration, there is a current phase of retail expulsion that has been in effect for 426 days. It took 474 days before the monthly average rose beyond the yearly average during the retail investor purge that was seen during the 2018 bear market.
If BTC price breaks below the $17.5K low since June, a breakout of the Levy remains likely due to the high concentration of supply in the current consolidation zone.
