Crypto Market Crash Wipes Out 600M in 24 Hours for Traders
Bitcoin experienced a recent crash that led to a downturn in the entire cryptocurrency market, resulting in over $300 billion being wiped out from the total market capitalization since July 3. Within the last 24 hours, more than 230,000 crypto traders suffered losses of over $660 million due to long-squeeze liquidations.
On July 5, Finbold obtained liquidation data from CoinGlass, revealing the significant impact of this crash. A total of $662.90 million in liquidations occurred, with $565.08 million coming from long-position traders. The long squeeze affected 233,088 traders, with Binance’s ETH/USDT pair experiencing the largest order liquidation of $18.48 million. Bitcoin led the liquidations with over $212 million, followed by Ethereum at $167 million, representing 32% and 25% of the total liquidations, respectively, with 85% attributed to long positions.
The crash began on July 3, with the TradingView crypto total market cap index (TOTAL) dropping from $2.25 trillion to $1.90 trillion in just 60 hours, resulting in a $311 billion loss. This decline has been one of the most severe hits in recent times.
As traders await economic data from the United States, analysts point to massive Bitcoin sell-offs as a major factor in the market downturn. Mt. Gox has initiated repayments from the 2014 event, distributing billions of dollars in BTC and BCH, leading to speculation about the impact on Bitcoin’s price.
Additionally, the German government’s ongoing Bitcoin dumps and increased selling by miners have added to the market’s instability. DeFi influencer Ignas has called for cryptocurrencies to decouple from Bitcoin’s influence, emphasizing the need for market maturity.
Investor sentiment has shifted from bullish to bearish amid rising concerns, with expectations of heightened volatility in the crypto market. Traders are advised to exercise caution with leverage positions in the current environment.
