Over the last 24 hours, the cryptocurrency market suffered a massive liquidation exceeding $1.1 billion in leveraged positions. This drastic correction occurred amidst an abrupt price drop in major crypto assets, including Bitcoin, which hit new weekly lows.
The impact fell overwhelmingly on bullish investors. Of the total liquidated, $974 million corresponded to long positions. More than 210,000 leveraged traders saw their accounts liquidated over the course of the day, highlighting how the drop severely punished those who were expecting a market rally.
Following this event, analysts are closely monitoring extreme volatility and trader sentiment, as liquidations of this magnitude tend to increase panic selling. Attention is now focused on whether the market will manage to find a new support floor or if the destruction of these long positions will trigger new liquidation cascades.
Source: https://www.coinglass.com/LiquidationData?%2F
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