Speculators in cryptocurrency derivatives suffered significant losses totaling $774 million over the past day, the largest single-day loss this year due to volatile market movements.
Leading digital asset Bitcoin surged to its highest level since November 2021, surpassing $63,000 in a stunning rise. However, this euphoria was briefly short-lived as prices plummeted below $60,000 due to fears over technical glitches on major exchanges such as Coinbase and Binance.
Adding to the volatility, observers have noted significant Bitcoin transfers from wallets linked to funds seized by U.S. authorities in the Bitfinex hack. The movement of nearly $1 billion to undisclosed addresses has sparked speculation that authorities could take advantage of the market surge to divest holdings. but, CryptoSlate Analysis suggests that this move is likely UTXO management.
Despite the disruption, Bitcoin rebounded to $62,530 at the time of reporting, up 7% from the previous day.
Meanwhile, other major cryptocurrencies have also seen impressive gains. Ethereum, for example, surged 5% to nearly $3,500, its highest since April 2022. Solana also hit its highest level in 22 months, hitting around $130. CryptoSlate data.
Among the top 10 cryptocurrencies by market capitalization, Cardano and Dogecoin stood out with impressive double-digit gains of 11.78% and 39.16%, respectively.
Nearly 190,000 traders were liquidated for $774 million.
The strong performance of the green market in the last 24 hours resulted in the liquidation of 189,679 traders worth $774 million, per Coinglass data.
Short-term traders currently dominate the liquidation landscape and account for a significant portion of overall losses. Those betting on price increases lost a total of $409 million, while long-term traders who were betting on price increases lost a total of about $365.48 million.
Bitcoin traders bore the brunt of the losses, with a significant drop of $292.09 million during this period. Short-term traders lost $187.83 million, while long-term traders lost $104.26 million.
Likewise, Ethereum suffered a total loss of $126.64 million, while traders on DOGE and Solana lost $50.3 million and approximately $29 million, respectively.
Meanwhile, the most significant private liquidation occurred on OKX, totaling $9.45 million in BTC-USDT-SWAP.
Across exchanges, Binance and OKX reported the highest liquidations, accounting for 35.57% and 35.31% of total liquidations, respectively. As reported by Coinglass, these losses amounted to $275.46 million and $275.43 million. On the other hand, Huobi, Bybit, and Bitmex recorded liquidation amounts of $79.4 million, $72.21 million, and $51.75 million, respectively.