Altcoins lead market liquidations resulting in 100 million in losses
In the past 24 hours, the cryptocurrency market saw a total of over $345 million liquidated from trading positions. Surprisingly, $100 million of these liquidations came from “other” cryptocurrencies that are not among the top 50 by market capitalization.
This data was obtained by Finbold from CoinGlass on June 8, following a significant crash believed to be triggered by macroeconomic factors. Long-position traders in these “other” cryptocurrencies suffered the most losses, with $103.82 million liquidated. On the other hand, short-sellers of these low-cap coins lost $6.09 million, resulting in a total of $109.91 million in lost capital within a day.
Among all digital assets, bulls bore the brunt of the liquidations, with $309.53 million out of the total $345.12 million. Bitcoin (BTC) experienced $43.21 million in liquidations, while Ethereum (ETH) faced $38.75 million in liquidations, mostly from long positions.
Altcoin and meme coin traders faced significant losses amidst the liquidations. The TradingView crypto market cap index (TOTAL3), which excludes BTC and ETH, has seen a decrease of over $60 billion in market capitalization since June 7. Currently, the index stands at $666 billion and is testing its resilience ahead of a potential altseason.
Analysts have highlighted a unique opportunity in alternative cryptocurrencies, pointing to a potential bullish momentum if TOTAL3 bounces back from its 30-day exponential moving average (30-EMA) on the daily chart.
The recent crash may help identify solid projects amidst the frenzy surrounding meme coins in the market. Traders and influencers who invest in meme coins face significant risks due to their speculative nature, driven primarily by social media hype. Investing in meme coins can be likened to gambling, relying on the “Greater Fool Theory” for profits, with the inherent risk of market saturation.
It is important to note that investing in cryptocurrencies is speculative and carries risks. Investors should be cautious and aware that their capital is at risk.
