Market Overview
Crypto traders faced substantial losses over the past 24 hours, with total liquidations surpassing $1.35 billion as the market downturn intensified from Monday to Tuesday. This decline pushed Bitcoin (BTC) below the $89,000 mark for the first time since mid-November.
- Bitcoin liquidations reached over $530 million.
- Ethereum (ETH) saw over $294 million lost from trades.
- Solana (SOL) suffered approximately $112 million in liquidations due to a drop exceeding 15%.
- XRP decreased by 14%, amounting to over $80 million in cumulative losses across affected cryptocurrencies.
Liquidations happen when exchanges close a trader’s leveraged position, which occurs if they do not meet margin requirements. This scenario can lead to significant financial loss for traders who are unable to maintain their positions during market turbulence.
Crypto exchange Bybit reported the highest liquidations with over $600 million lost. Other platforms like Binance and OKX followed with losses of $300 million and $147 million, respectively.
Investor sentiment shifted towards safer assets like the Japanese yen, reflecting a broader risk-averse attitude amidst economic uncertainty. This trend typically leads to further dips in riskier assets such as cryptocurrencies.
