Bitcoin Plunges: Traders Confront $300M Liquidations in 24 Hours

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In a sudden, unexpected development on a seemingly serene Monday morning, Bitcoin succumbed to yet another nosedive, shedding about 5% of its value to settle precariously at the $61,000 benchmark. This drastic turn of events has startled investors, triggering a formidable surge of liquidations that quickly snowballed toward a staggering $300 million within a mere 24-hour timeframe.

According to the most recent data collated by Coinglass, tens of thousands of cryptocurrency traders woke up to a grim reality – their leveraged positions had been swept away in a tempest arising from the prevailing Bitcoin crash. An alarming decline in the cryptocurrency market triggered a rampant wave of liquidations amounting to loss in hundreds of millions.

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A comprehensive tally revealed a chilling statistic: over 91,000 traders had inadvertently parted ways with their positions, culminating in a massive fallout of just over $282 million. With the ongoing Bitcoin and cryptocurrency market volatility, a significant majority of these liquidations – ironically a whopping 91.59% – was shouldered by long traders.

Ordinarily, with the profound market influence commanded by Bitcoin, the cryptocurrency giant has unfortunately shouldered the brunt of the liquidation volumes, bearing a hefty $103 million outlay. Hot on its heels, Ethereum stepped in to claim the second place with $64 million, followed by Solana holding the third position with $13 million. Collectively, liquidations from this trifecta have surpassed the $38 million mark.

Taking a closer peek at individual exchanges, Binance boasts a lion’s share with about $102.9 million, constituting more or less 35% of the total global liquidations. The OKX exchange logged a close second with its liquidations accounting for $82 million. Huobi, Bybit and Bitmex trailed in third, fourth and fifth positions registering notable figures of $47.72 million, $21.33 million, and $15.15 million correspondingly. The most profound single liquidation order was inked at the Bitmex exchange, plunging a trader into a $10 million setback on the XBTUSDT pair.

In the present unfolding scenario, a substential chunk of liquidation, amounting to $230 million out of the recorded $282 million, has been logged merely in the last 12 hours. Liquidations volumes for the preceding hour alone have crossed the $102.5 million mark.

Nonetheless, despite such noteworthy liquidation volumes, the day at hand has not taken steadfast claim as the worst for the month of June. With turbulence being a reoccurring theme for this month, particularly with a surge of crashes, a pattern of liquidation trends for the month has begun to emerge. On June 7, for instance, liquidation volumes soared to $360 million as the Bitcoin price took a haemorrhaging blow, falling from $71,000 to $68,000.

Repeating history on June 18, liquidation volumes exceeding $300 million were recorded in response to a slump in Bitcoin price – from $67,000 down to $64,000. Should the Bitcoin price continue to plummet, the liquidation volume’s potential to soar will only be a question of when, and not if.

As it stands, the Bitcoin price is beleaguered in a struggle to hold a ground of $61,000, a substantial 5% decline over the past day. Should the bulls fall short in maintaining this support level, the prospect of the Bitcoin price descending into the $50,000 region will loom significantly larger.