The cryptocurrency market has been shaken by liquidations surpassing $210 million, predominantly driven by long positions, accounting for 85% of the total losses amidst the recent market turbulence.
According to data from Coinglass, the recent market volatility has led to a 4% decline in Bitcoin’s price over the past 24 hours, triggering liquidations worth $210.26 million across both long and short positions, affecting 92,298 traders.
Long positions bore the brunt of the liquidations, totalling $178.2 million, while short positions witnessed liquidations amounting to $32.05 million.
This overwhelming liquidation of long positions, constituting 84.7% of the total, has shifted market sentiment from bullish to bearish, as evidenced by the sea of red in the market.
The current market instability stems from Bitcoin’s retreat from its recent peak of $67,183 on April 23, leading to a notable correction and a subsequent decline below the $64,000 threshold.
This bearish trend has extended to the wider cryptocurrency market, with altcoins experiencing a downturn as well.
Bitcoin, as the leading cryptocurrency, has faced the largest liquidated positions, totalling $44.6 million within 24 hours.
This trend echoes a similar scenario observed on April 18, before the recent Bitcoin halving, resulting in a loss of $247 million.
However, the optimism sparked by the halving on April 20 led to a resurgence of long positions amid the market’s recovery.
Despite the surge in liquidations, the derivatives market has witnessed a significant increase in volume, jumping by 30% in the last 24 hours to reach $159 billion.
This surge is attributed to an increase in short positions, leading to a long/short ratio of 0.7832.
