Bitcoin and Ether price slump triggers billions of dollars in liquidations, with one trader losing $55.9 million.
According to a report published by Cointelegraph, the recent slump in Bitcoin (BTC) and Ether (ETH) prices has led to a widespread crypto market liquidation, with one trader losing $55.9 million and another suffering a $10 million loss. In total, the past 24 hours saw 176,752 traders liquidated, with 90% of these taking place within the last 12 hours, according to Coinglass data.
The sudden surge in price volatility comes after BTC and ETH recorded their lowest daily volatility in years. During the massive price drop, a Binance trader using the ETHBUSD contract was liquidated at $1,434.37, losing a staggering $55.9 million, marking the largest single liquidation for the day. Another trader using the BTCUSDT contract on Binance lost almost $10 million.
This billion-dollar liquidation event is the largest in the past eight months, following the last major event during the FTX collapse. The price fluctuations in the crypto market have been attributed to several factors, including the SpaceX Bitcoin write-down and macroeconomic trends, amidst BTC and ETH trading within a range for the past couple of months.
BTC held onto the key $28,000 support, while ETH maintained the $1,500 support until succumbing to the recent downward pressure. Additionally, liquidity in the crypto market is notably lower, with major crypto exchanges like Coinbase experiencing a significant decline in trading volume.