Over the last 24 hours, the cryptocurrency market experienced significant liquidations, with 02,086 traders being liquidated for a total of $258.34 million in losses. The largest single wipe-out occurred on Bybit’s ETH/USDT market, totaling $2.65 million. Liquidations surged to $126.18 million over 12 hours, with $60.01 million of long positions being liquidated compared to $66.17 million of shorts. In the entire 24-hour cycle, there were $138.03 million of long liquidations and $120.31 million of shorts.
During the 12-hour window, Ethereum led all tokens in liquidations, accounting for $42.33 million of the total. Most of these liquidations were ETH shorts that were closed out. Bitcoin followed with $33.24 million in liquidations, while all other assets combined for less than $12 million. On average, over 76% of liquidations were long positions across major assets for the day. Despite these losses, Ethereum experienced a significant rise during the same period, climbing from $1,579.52 on April 21 to $1,629.86 on April 22, marking a 3.2% increase.
The rally in Ethereum’s price triggered margin calls on short bets, leading to the majority of the $42.33 million in ETH liquidations. Bitcoin also saw a 1.1% increase in price to $88,324.30, but experienced $29.96 million of long liquidations and $57.65 million of shorts being liquidated over 24 hours. This shows that both long and short positions are vulnerable in the market. CoinGlass data reveals that high leverage can backfire during price swings, regardless of how minor they may seem. This is especially evident in Ethereum, where short squeezes and stop-hunts have dominated recent liquidations.
In conclusion, the recent surge in liquidations in the cryptocurrency market highlights the risks associated with high leverage trading. While Ethereum saw significant gains, leading to the liquidation of shorts, Bitcoin also experienced losses in both long and short positions. Traders need to be cautious and mindful of their leverage levels to avoid being caught in liquidation events during volatile market conditions. It is essential to stay informed about market trends and dynamics to make informed trading decisions and mitigate risks.
