Crypto traders experienced significant losses as bitcoin and ether suffered a sharp sell-off. Over the past 24 hours, approximately $1 billion in liquidations occurred, according to Coinglass data. Bitcoin’s price dropped to around $25,000 on the Binance exchange, reaching a two-month low. Long positions totaling $821 million were wiped out during the sell-off, with bitcoin traders incurring losses of $472 million and ether traders losing $302 million.
This marked the highest level of bitcoin liquidations for a single day since June 2022, when the price plummeted to $17,000. The sell-off occurred amid concerns in global financial markets, including crumbling foreign currencies, Chinese economic worries, and surging bond yields. As a result, major cryptocurrencies like bitcoin and ether experienced near double-digit losses, reaching their lowest levels since early summer.
Liquidations are triggered when leveraged trading positions are closed due to a loss of the trader’s initial margin or failure to meet margin requirements. This cascade of liquidations can exacerbate price declines and amplify losses.
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