$149 Million Lost to Crypto Market Liquidations
The continuing market sell-off has led to nearly $149 million in liquidations for leveraged crypto traders over the past 24 hours. According to data from Coinglass, 58,200 traders were liquidated, with mostly long traders suffering losses across the majority of exchanges.
Bitcoin and other cryptocurrencies surged early on Tuesday before falling sharply. The main crypto coin rose more than 7% at one point on Tuesday to reach $20,385. However, the rise was short-termed, and the declines were perpetuated until the early hours of Wednesday.
Bitcoin’s rise and fall came as investors drew back owing to inflation and recession fears that have dogged asset markets of all sorts for months. Investors also considered Fed chair Jerome Powell’s speech on crypto regulation. Considering its limited influence on the real economy, decentralized finance (DeFi) regulation, according to Powell, needs to be carried out “carefully and thoughtfully.”
Here’s who partly sold BTC.
After being rejected again below the critical $20K level, Bitcoin has caused a substantial unrealized loss for short-term investors. However, long-term holders continue to be committed, reluctant to spend their coins. According to Glassnode, this suggests that the majority of Bitcoin market volatility is associated with the short-term holder class.
Following the Great Miner Migration, there is a current phase of retail expulsion that has been in effect for 426 days. It took 474 days before the monthly average rose beyond the yearly average during the retail investor purge that was seen during the 2018 bear market.
If the BTC price drops below the $17.5K lows from June, there remains a chance of a levee breaking because of the high concentration of supply in the present consolidation zone.