Traders Lost Almost $900 Million In The Past 24 Hours As Increased Volatility Kicks In

It’s no news that the crypto market is very volatile and acts as a double-edged sword. This fact is made clear over the last 24 hours as traders (Bulls and Bears) lost $890 million. The current total liquidation shows an increase of 271% over the previous trading volume. Crypto Derivatives also thrive during the time under consideration as the 24 hours trading volume increased by 55% racking a total of $207 billion. The market also records its highest participation as a total of 163,000 traders took part in it. Here is a breakdown of the liquidated funds;

The Breakdown

A sum of 72% of all the liquidations in the last 24 hours are from long positions. The bulls continue to more funds but this trend is about to reverse as the past hour suggest that 66% of the $3.8 million during this time are from short positions.

Bitcoin sees the highest liquidated funds as traders lost $222.7 million tradings the king coin in the past 24 hours. The largest alt falls in line as $159 million was liquidated on it. Other altcoins such as Solana, XRP and ADA recorded $80 million, $62 million and $42 million respectively. The market sentiment in the derivative market is a little bearish as barely 48% of the currently open orders are long.

The recent swing in market conditions could be attributed to some traders taking profit from their recent trades as they have responded positively to the news of the 200 BTC purchase by El Salvador. This fatal swing left BTC struggling at $50k and SOL at $183 after attaining a new ATH at $195.

The question about price actions after the correction is still open for debate. The fear and greed index is pointing to a possible price recovery as there is intense greed in the market with the reading tilting to 79. We may see a continuous struggle for Bitcoin to break through the $51k region until it experiences a rally.