Nearly $2 billion in liquidations occurred in the cryptocurrency market in the past 24 hours, and total market capitalization fell below $3 trillion for the first time in five months.
Bitcoin (BTC) alone accounted for nearly half of the total liquidations, and traders who were betting on further gains suffered the biggest losses in the recent wipeout.
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Massive liquidation cascade sweeps crypto market
According to data from Coinglass, the crypto industry has experienced another significant liquidation event. In the past 24 hours, 391,164 traders were liquidated, bringing the total amount liquidated to $1.91 billion.
Of the total liquidation, long positions accounted for $1.78 billion, while short positions accounted for only $129.3 million. The single largest liquidation took place on decentralized perpetual exchange HyperLiquid, closing BTC-USD positions worth $36.78 million.
Bitcoin led all liquidations, with $929 million coming from long positions out of a total of $960 million. Ethereum (ETH) followed with $403.15 million, again mostly due to leveraged longs.
On-chain data shows the wipeout’s significant impact on prominent traders. PeckShieldAlert reported that several major ETH whales have been liquidated. second largest The cryptocurrency fell below $2,900. Individual settlement amounts ranged from $2.9 million to $6.52 million.
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Additionally, Lookonchain highlighted that the account of Mr. Machi, a high-profile figure, had shrunk to just $15,538. His total losses now exceed $20 million. Another significant loss was recorded by the “anti-CZ whales”.
The blockchain analysis firm pointed out that the trader’s profits on HyperLiquid had dropped significantly in just 10 days. Large leveraged long positions in ETH and XRP were the main culprit. Furthermore, the whale was liquidated today as well.
“He was once a legend with profits of nearly $100 million, but now his profits have dropped to $30.4 million,” Lookonchain added.
The selloff came as the company’s market capitalization fell more than 6% in the past day to $2.9 trillion. The Kobeisi letter highlighted that the market has lost $1.3 trillion in value since the beginning of October.
“This is one of the fastest-moving crypto bear markets ever,” the post reads.
The Kobeisi letter described this as a “mechanical bear market” caused by heavy leverage and sporadic liquidations. Feedback loops add downward pressure as leveraged traders are forced to sell as prices fall. According to their analysis,
“Over the course of this 45-day bear market, we have seen very few bearish fundamental developments in cryptocurrencies. The market is efficient. The market will resolve itself.”
