The cryptocurrency market is seeing increased short liquidations as major assets, including Bitcoin, gain bullish momentum.
According to data provided by Coinglass, the total liquidations over the past 24 hours surpassed $192 million. Of this tally, more than $145 million in short trading positions have been wiped out and the remaining $46 million belongs to long trades.
Bitcoin (BTC) recorded $63 million in liquidations—$55 million shorts and $7.7 million longs—as it surpassed the $66,000 mark on Oct. 14. BTC is still up 2.3% in the past 24 hours and is trading at $65,300 at the time of writing.
Ethereum (ETH) is sitting on the second spot with $37 million in daily liquidations—$30 million in shorts and $7 million in longs. Thanks to the short liquidations, the leading altcoin crossed the $2,600 mark for the first time in two weeks.
Per Coinglass, the largest single liquidation order happened on Binance, the largest crypto exchange by trading volume, and was worth $5.2 million in ETH/USDT pair.
The Binance exchange accounts for $94 million of the total liquidations with a 76% dominance of short positions.
Despite the rallying liquidations, the total open interest in the crypto market increased by 4.7%, reaching $69.5 billion, per Coinglass data. This movement usually shows signs of FOMO and greed.
According to data from CoinGecko, the global crypto market capitalization increased by over $109 billion over the past day—currently sitting at $2.406 trillion. At this point, Bitcoin has a 54.2% dominance over the whole market with a total market cap of almost $1.3 trillion.
Another bullish driver for the Bitcoin price was the impressive surge in the U.S.-based spot BTC exchange-traded funds. Per a crypto.news report, these ETFs recorded $555.9 million in inflows on Monday—marking a four-month high.
The crypto market recorded a notable bearish momentum over the past day, bringing increased liquidations.
According to data provided by CoinGecko, the global crypto market capitalization declined by 3% in the past 24 hours — falling from $2.31 trillion to $2.27 trillion. This shows a roughly $40 billion decrease.
The daily trading volume, however, rallied by 50%, reaching $99.5 billion.
Many of the leading cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), saw downshifts. BTC is currently trading at $62,400 and ETH is hovering close to the $2,400 mark.
The market-wide decline brought a $220 million liquidation, per data from Coinglass. Over 69% of the liquidations, worth $153 million, belong to long positions.
Data shows that Bitcoin is leading the chart with $58.6 million in liquidations — $35.1 longs and $23.4 million shorts. Ethereum is hovering close with $50.6 million in liquidated trading positions — $42.8 million longs and $7.8 million short.
Binance alone accounts for $105 million in liquidations, followed by OKX’s $74 million.
According to Coinglass data, the largest single liquidation, worth $10.97 million in ETH/USDT pair, happened on Binance.
Following the mass liquidations, the total cryptocurrency open interest decreased by 2% and is currently sitting at $60.9 billion.
Usually, a declining open interest brings lower price volatility due to a decreased amount of expected liquidations.
The cryptocurrency market witnessed an impressive bullish momentum after the long-awaited rate cut by the U.S. Federal Reserve, bringing increased liquidations.
According to data provided by Coinglass, the total crypto liquidations surged by 46% over the past day, reaching almost $200 million. Most of the liquidated positions, worth $126 million, are shorts due to the market-wide bullish movements.
Bitcoin (BTC) is leading the chart with $75 million in liquidations following a 2.9% price hike. BTC is currently trading around the $62,000 mark.
Notably, the largest single liquidation, worth $8.9 million in the BTC-USD pair, occurred on the Bybit crypto exchange, per Coinglass data. In total, over 66,000 traders have been liquidated in the past 24 hours.
Ethereum (ETH) took the second spot with over $35 million in liquidations as its price surpassed the $2,400 mark.
Despite the increased liquidations, the total crypto open interest rose by 4% in the last 24 hours and is currently hovering at $58.7 billion.
Increasing open interest is usually a sign of FOMO — the fear of missing out — that could potentially boost the amount of liquidations, leading to high price fluctuations. At this point, investor sentiment has significantly increased.
The increased liquidations came after the U.S. Fed announced a 50-basis-point rate cut at 18:00 UTC on Sept. 18. This was the first Fed rate cut since March 2020.
Subsequently, the global crypto market cap increased by 1.9%, reaching $2.23 trillion, per data from CoinGecko. The daily trading volume surpassed the $120 billion mark. Moreover, the U.S. stock market also witnessed bullish momentum.
The cryptocurrency market witnessed a sudden dip earlier today, causing a significant increase in the amount of liquidations. But the downtrend seems to be fading away.
According to data provided by CoinGlass, over $178 million have been liquidated from the crypto market over the past 24 hours, marking a 292% increase. Bullish traders, holding long positions, witnessed most of the losses, worth $153 million.
The total open interest in the crypto ecosystem declined by 2% in the past 24 hours and is currently hovering at $55 billion.
Data shows that most of the liquidations were executed in retail traders’ positions. The largest single liquidation, worth $2 million, happened on the OKX exchange.
Ethereum (ETH) is leading the chart with $55 million in liquidations followed by Bitcoin’s (BTC) $35 million.
The massive liquidations brought a dip to the crypto market. The global cryptocurrency market capitalization declined by 3.6% in the past 24 hours and is sitting at $2.14 trillion, according to data from CoinGecko.
Bitcoin dropped to an intraday low of $58,150 but soon regained momentum to the $59,000 mark.
According to CryptoQuant, the number of Bitcoin addresses depositing into exchanges has dropped to 132,100 — a level last seen in 2016.
#Bitcoin Exchange Depositing Addresses at Its Lowest Level Since 2016
“A low value suggests a decrease in the number of investors selling coins on spot exchanges, potentially indicating a reduction in selling pressure.” – By @CryptoOnchain
The indicator shows that the number of holders selling BTC has significantly decreased. This will, consequently, hint at a declining selling pressure and lower price volatility.
Per a crypto.news report on Sept. 15, over $1.3 billion worth of BTC left centralized exchanges last week. Bitcoin’s on-chain movements and indicators show a potential bullish momentum.
However, macro events could still shift the market direction despite the bullish investor sentiment.
Crypto investors suffered the biggest liquidation in over a week as Bitcoin and most altcoins continued their downtrend.
Bitcoin and altcoins liquidations rise
Data compiled by CoinGlass shows that total liquidations on Friday, Sep. 6, jumped to over $221 million, up from $72 million a day earlier. It was the biggest jump since Aug. 27 when liquidations soared to $281 million.
Bitcoin (BTC), the biggest cryptocurrency, led the liquidations with over $114 million;
Bitcoin and other cryptocurrencies dropped as investors dumped risky assets and moved to safe havens. The tech-heavy Nasdaq 100 index dropped by over 500 points while the small-cap Russell 2000 index crashed by over 1.96%.
This decline happened after the U.S. published mixed jobs reports, signaling that the Federal Reserve will deliver a 0.25% cut instead of the expected 0.50%. The numbers showed that the unemployment rate fell slightly to 4.2% while wage growth bounced back.
Especially after the excitement of a month ago, when analysts and economists suddenly jacked up their probability of an economic recession, this morning’s (August) US jobs report comes as a relief… that is unless you were absolutely convinced that the Federal Reserve would cut…
There is a risk that Bitcoin and other altcoins may continue falling in the coming weeks. For one, a sense of fear is spreading in the market as the fear and greed index has fallen to the fear area of 30. In most periods, cryptocurrencies retreat when investors are fearful.
Bitcoin and Ethereum are also seeing weak institutional demand as their ETFs have continued their outflows. Data shows that Bitcoin ETFs have shed assets in the past eight consecutive days while Ether funds have shed over $568 million since inception.
Additional data shows that the futures open interest continued falling and is hovering at its lowest point in over a month. Bitcoin’s open interest dropped to $28.4 billion, down from the year-to-date high of over $37 billion.
Technically, there is a risk that Bitcoin is about to form a death cross pattern as the spread between the 200-day and 50-day Exponential Moving Averages is narrowing.
The last time Bitcoin formed a death cross was in 2022. The event led to a 65% crash.
Bitcoin has also moved below the 38.2% Fibonacci Retracement point, meaning that it could drop to the 50% level of $49,000, its lowest level last month. A drop below that point will lead to more downside. Other altcoins tend to crash when BTC is not doing well.
As expected, the bearish start in September has brought an increased amount of liquidation to the cryptocurrency market.
According to data provided by Coinglass, the total amount of crypto liquidations increased by 176% in the past 24 hours and is currently sitting at $155 million. Most of the liquidations came from Bitcoin (BTC), worth $45.6 million — $36.7 million longs and $8.9 million shorts.
Ethereum (ETH) witnessed $39.7 million in liquidations — $32.2 million longs and $7.5 million shorts — per data from Coinglass.
The increased liquidations come as the global cryptocurrency market capitalization dropped by 2.7% over the past day, currently hovering at $2.1 trillion, according to CoinGecko data. N
BTC slipped by 1.5% in the past 24 hours and is trading at $57,500 at the time of writing. ETH recorded a 2% drop and is currently changing hands at $2,440.
Data from Coinglass shows that the largest single liquidation order, worth $10 million in the BTC/USDT pair, happened on Binance, the leading cryptocurrency exchange by trading volume.
Binance saw a total of $74.5 million in liquidations, followed by OKX’s $49.9 million.
According to Coinglass, bears have usually been dominant in September with the Bitcoin price seeing negative momentum in eight of the last 11 years. On average, BTC declined by 4.53% over the past 11 years in September.
Notably, the Bitcoin price witnessed bearish momentum in the third quarter of the past two years. Per Coinglass, BTC declined by 2.5% and 11.5% in Q3 2022 and 2023, respectively.
It’s still important to keep an eye on macroeconomic events which could potentially change the market direction.
Decentralized finance protocol Aave generated more than $6 million in revenue as the crypto prices plummeted.
Stani Kulechov, founder of Aave (AAVE), said in a post on X on Aug. 5 that the DeFi protocol secured the revenue after navigating the crypto market plunge that had investors reeling on Monday. Aave, which traded higher to hit $117 on Aug. 2, followed by lows of $79 on Aug. 5 amid a crypto crash.
Aave sees $6 million in revenue
According to Kulechov, Aave helped secure $21 billion in value amid the bloodbath, as the network was rewarded $6 million in revenue.
Aave’s revenue surge came amid the massive liquidations witnessed across the market as Bitcoin (BTC)’s plunge to below $50k pulled altcoins lower. Aave also saw a series of such transactions, with one involving $7.4 million worth of wrapped Ether (WETH), resulting in $802,000 in revenue for the DeFi protocol.
“Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value,” Kulechov noted. “Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.”
DefiLlama data shows the Aave treasury currently holds over $119 million worth of assets. However, pullbacks in crypto prices have seen the total value locked on Aave drop to around $16.8 billion, down 27% in the past week.
Crypto liquidations surpass $1 billion
Crypto traders with massive bullish bets on digital asset derivatives have seen more than $1.2 billion liquidated in the past 24 hours. Long liquidations account for the largest share of the rekt positions with $956 million, while bearish bets currently stand at $265 billion.
According to Coinglass data, more than 307,000 traders liquidated as the market mirrored declines across stocks. The market’s single largest liquidation order, $27 million, occurred on Huobi.
Bitcoin hits multi-month low as stock markets crash. What happened to crypto market crypto on black Monday?
Table of Contents
From Aug. 4 to 5, the crypto market experienced a significant drawdown. Bitcoin (BTC) fell below $50,000, and Ethereum (ETH) — $2,200. Following BTC and ETH, other crypto assets from the top 10 by capitalization also were in freefall.
BTC price chart | Source: TradingViews
A significant drawdown caused a wave of liquidations in future contracts. Over a day, the figure amounted to more than $1 billion, with a significant prevalence of long positions.
Why is crypto crashing right now?
The collapse of the cryptocurrency market is associated with several factors. Thus, crypto shows a close correlation with stock markets, which have fallen since last week. In turn, they are also influenced by geopolitical tensions in the Middle East.
The latest abrupt changes in the Bank of Japan’s policy and the refusal of the U.S. Federal Reserve to lower the interest rate also add uncertainty.
In addition, community members are discussing the involvement of a significant player in the market dump. On-chain analysts hint at the liquidation of the market maker Jump Crypto. Earlier, Jump Crypto unlocked 120,000 wETH in Lido and sold most of it, giving momentum to the collapse of Ethereum.
Spot On Chain specialists note that over the past 11 days, more than 100,000 ETH have been transferred from wallets allegedly associated with the Jump Trading company to centralized exchanges. The company began moving assets on July 25 — two days after the official launch of the Ethereum ETF in the United States.
[Update] Jump Trading moved another net amount of 17,576 $ETH ($46.78M) to CEX in the past 24 hours!
This solely came from their existing $ETH holding.
On Aug. 4, another 17,576 ETH worth $46.78 million were withdrawn from the Jump Trading address. The total amount of assets transferred to exchanges exceeded 104,000 ETH. According to the Arkham Intelligence platform, the firm continues to hold assets in rETH, wstETH, and Ethereum worth $109.4 million.
In addition, the crypto market’s decline is being fueled by Mt. Gox‘s payments to creditors, weak ETF dynamics, and changes in the political race in the United States.
What experts say
Economist and president of brokerage company Euro Pacific Capital Peter Schiff is confident that the trend will increase by the start of trading on the U.S. stock market.
He noted that gold fell 45% from its maximum in November 2021. Now, it has recovered to a level above $50,000, but it is worth waiting for the stock market’s opening.
#Bitcoin traded below $50K. It’s down about 22% since Friday’s U.S. stock market close, and It’s now down 45% priced in #gold since its Nov. 2021 high almost three years ago. It’s back above $50K now, but wait until the stock market opens and ETF holders can finally sell too.
Speaking about the fall of ETH, a crypto analyst who goes by the nickname DeFi Mochi in X believes that the main reason for the sharp fall of ETH is massive sales by significant funds. Market players such as Paradigm and Grayscale contributed to the decline.
This $ETH obliteration is largely caused by capitulation from large funds
Below are the sells from these funds denominated in $ETH
The “black swan” theory applies to both traditional and crypto markets. Let’s investigate how this happens.
The theory was formulated by an economist and author of the bestseller “The Black Swan”, Nassim Nicholas Taleb. The term refers to events that are challenging to predict or prominent but ignored, with significant consequences.
Taleb explains that for hundreds of years, people believed all swans were white, and a black swan was seen as a sign of impossibility. However, this assumption was turned upside down when Europeans first visited Australia and were shocked to find black swans swimming in their lakes.
In his book, Taleb calls World War I, the development of the Internet, and the 2008 Global Financial Crisis black swans.
What do these unexpected events have in common? Three defining characteristics must be present for a black swan event to occur.
First, the event must be unlikeable: a black swan event is always a statistical oddity. The probability of it happening is low, and there may have been countless times when similar conditions did not result in such events.
Additionally, a black swan event has an extreme impact: when a black swan event does occur, it significantly impacts the world around it. This impact can be positive, but in most cases, it is catastrophic.
However, such an event is easy to explain. despite the unexpectedness of black swan events, people may later realize that such improbable events could have been predicted.
Significant black swans of the crypto market
FTX
One of the most notable black swans of 2022 was the collapse of FTX. The crypto exchange faced legal problems, internal instability, and an SEC investigation. The market crashed as panicked users tried to withdraw their funds from the exchange, and many FTX users could not get all their money back before the exchange closed.
Terra Crash
Due to the interconnectedness of specific cryptocurrencies, unpredictable events can cause several coins to crash at once. In May 2022, one Terra user who held a considerable amount of UST (now known as USTC) sold all his coins. This led to a collapse of UST capital, and users began to transfer funds to stablecoins.
Coronavirus Pandemic
In March 2020, one of the first black swan events for cryptocurrencies appeared — the coronavirus pandemic, which affected all markets, including crypto. Analyst Willy Woo noted back in March 2020 that something strange was happening in the market, which was reflected in investor activity. At the same time, Woo suggested that the industry faced a black swan.
This is a chart of on-chain “investor activity” right now. Long term looks solid. Short term is very weird, normally it’s smooth oscillations, not anymore, it’s like something hit it (#COVID19?), it’s fizzing out. Waiting for this to reverse before we put in a bottom. Maybe soon. pic.twitter.com/uy9gSeE3Ts
Just one day after the World Health Organization officially recognized the pandemic, the price of Bitcoin fell by almost 50%. Other cryptocurrencies soon followed suit, and the market capitalization fell by 40% in one day. For some investors, this meant financial ruin.
Is it possible to predict a black swan event and be prepared for it?
The sharp collapse of the crypto market and Bitcoin’s rollback to a multi-month low may indicate that the crypto industry was unprepared for the consequences of the recent weeks. However, a black swan implies more protracted drawdowns in the crypto market, so it seems premature to talk about its occurrence.
It is important to remember that black swan events are an inevitable part of life in the crypto market. They can be catastrophic, but they can also represent opportunities. The key is to be prepared for them and have a strategy in place in case they occur.
The most important thing to remember about black swans is that they are unpredictable. It is impossible to know when and where they will occur or what precisely the consequences will be. However, investors can be better prepared for them and use them to their advantage by being aware of them and understanding how they work.
The cryptocurrency market has been wandering in bearish conditions, leading to over $1 billion in liquidations.
According to data provided by Coinglass, total crypto liquidations have reached $1.06 billion, marking a 454% increase over the past 24 hours. Roughly 85%, worth $900.6 million, belong to long trading positions — traders who were expecting a further price hike for their trades.
Crypto liquidations map – Aug. 5 | Source: Coinglass
Data shows that over 278,000 traders have been liquidated over the past 24 hours. The largest single liquidation happened on the Huobi crypto exchange and was worth $27 million.
Bitcoin (BTC) accounts for $362 million in liquidations and Ethereum (ETH) is following closely with $345.7 million in liquidations over the past day.
Per data from Coinglass, Binance is leading the charts with $412 million in liquidations —$342.6 million longs and $69.9 million worth of shorts. The OKX crypto exchange came second with $319.4 million in liquidations — $261 million longs and $57.9 million short trading positions.
Consequently, the total crypto open interest decreased by 18.7% and is currently hovering at $47 billion, according to Coinglass.
The increased liquidations come as the broader cryptocurrency market faces a bearish storm. According to data provided by CoinGecko, the global crypto market capitalization plunged by 13.4% over the past 24 hours and is sitting at $1.94 trillion.
On the other hand, the total crypto daily trading volume increased by 155%, reaching the $220 billion mark.
The leading cryptocurrency, Bitcoin, plunged by 12% in the past 24 hours and is trading at $52,880 at the time of writing. The asset’s price briefly slipped to $49,121 and its market cap dropped below the $1 trillion mark earlier today.
Some analysts suggest that one potential reason for the market-wide downturn is the escalation of the Iran-Israel conflict, which could spark wider contagion in markets—including crypto—globally.
