Bitcoin’s recent price drop below the $100,000 mark has triggered over $700 million in cryptocurrency liquidations across the market, affecting nearly 200,000 traders.
Total liquidations across crypto derivatives hit $705.14 million within a 24-hour period. A total of 192,739 individual traders faced liquidation.
Long positions bore the brunt of the sell-off, accounting for $578.65 million in losses. Short positions saw $126.49 million in liquidations.
The single largest liquidation was a $10.46 million position on Hyperliquid for a BTC-USD pair.
🚨 Liquidations of USD $700 million in the crypto market
Bitcoin falls to USD $98,102 and loses the $100,000 support
The correction exceeds 20% from its historical maximum
192,739 traders liquidated in 24 hours
Long positions suffer the most, with USD $578… pic.twitter.com/1JMyzPz39d— Diario฿itcoin (@DiarioBitcoin) March 7, 2024
Bitcoin itself accounted for almost $250 million in liquidations from the previous day. Approximately $215 million of these were from long positions.
Ethereum (ETH) was the second-most affected asset, with $207 million in total liquidations. The majority of these were also from long positions.
The digital currency dipped to a local low of $98,102 on Thursday. This marks a correction of more than 20% from its all-time high of $126,000 reached last month.
Bitcoin’s global market capitalization has fallen below the $2 trillion mark. It currently trades around $98,500, reflecting a 3.4% decline over the past 24 hours.
Earlier on Thursday, Bitcoin had briefly touched $104,000. This modest recovery followed President Donald Trump’s signing of a budget bill.
The bill ended the longest U.S. government shutdown in history. Analysts suggest a liquidity crisis from the 43-day shutdown is deterring risk investors.
Increased selling pressure is also attributed to growing expectations that the Federal Reserve will not cut interest rates by 25 basis points in its December meeting. During the fall, Bitcoin recorded 16 consecutive 15-minute “red candles,” signaling strong bearish sentiment.