Cryptocurrency$127 Million In Bitcoin And Ethereum Positions Liquidated Amid...

$127 Million In Bitcoin And Ethereum Positions Liquidated Amid Market Drop


Data shows that over the past 24 hours, more than $127 million in Bitcoin and Ethereum futures have been liquidated. The price of both cryptos has decreased by 6% and 7%, respectively, wiping out the recent gain.

According to Coinglass statistics, Bitcoin futures alone lost $57.78 million, implying that most trading activity and open interest were restricted by market capitalization to the most prominent cryptocurrency. However, Ethereum futures suffered a $64 million loss. 

  Related Reading | Bitcoin Market Cap Shed Over $120-B Last Month – How Much More Can It Lose?

Liquidations occur when an exchange closes a leveraged position for a safety mechanism. It happens because of a partial or total loss of the trader’s initial margin. That happens primarily in futures trading. That only tracks asset prices instead of spot trading, where traders own the actual assets.

As per CoinMarketCap statistics, Bitcoin is currently down 5.85% on the day. It also means that the major cryptocurrency with a market value of $563.33 billion is down 57.06% from its all-time high of $68,789.63.

Likewise, Ethereum, the second-largest cryptocurrency, is now down 64.02% from its all-time high of $4,891.70 reached in November 2021. Nevertheless, ETH is struggling to keep its recent positive momentum going.

Tradingview.com
BTC’s price currently fluctuates around $29,912.29  | Source: BTC/USD price chart from TradingView.com

Feasible Reasons Behind Bitcoin & Ethereum Crash

The Crypto Fear & Greed Index is a way of gauging market activity and determining if the price of cryptocurrencies are priced fairly. According to the Fear & Greed Index, the score is down (15 out of 100), implying that the market is experiencing “extreme fear.”

First, there has been a decrease in Ethereum and Bitcoin trading activity. According to data from DefiLlama, the Total Value Locked (TVL) across multiple protocols in Ethereum has dropped from $88.67 billion to $68.02 billion in the last 24 hours.

The flow of Bitcoin to crypto exchanges is down 37.4%, indicating lower demand for BTC among investors, as per the data from Chainalysis indicates.

DeFi Protocols On Ethereum

TVL, or Total Value Locked, on Aave, the largest decentralized finance protocol on Ethereum, lost 15% of its value over the past month. Other blue-chip projects like Curve Finance, MakerDAO, Lido, and Uniswap also lost double-digits of TVL over the same period.

  Related Reading | Polygon (MATIC) Price Falls Short Of Reaching Full Potential Despite Recent Developments

Ethereum is still the most popular blockchain for decentralized applications (defi), with 55.59% of the total defi TVL. This is due to the $101.32 billion worth of value locked in on the ETH chain. Terra is second in terms of market share, with 12.86% and $23.44 billion locked in on its blockchain. Binance Smart Chain (BSC) has 6.37% of the total defi TVL, or $11.6 billion today.

               Featured image from Flickr and chart from TradingView.com



Original Source Link

Latest News

Hyundai and Kia now qualify for the federal EV tax credit

Five electric vehicles from Hyundai, Kia, and Genesis now qualify for the US’s $7,500 EV tax credit, Electrek...

Rights and Wrongs of Chief Justice Roberts’ Year-End Report on the Judiciary

  Supreme Court Chief Justice John Roberts' 2024 Year End Report on the Federal Judiciary raises several...

Healthy breast cells can look like invasive cancer, complicating early diagnosis

Most cancer cells have too many or too few chromosomes, distinguishing them from normal cells. But a new...

Live Baltimore taps new executive director

The incoming executive director has worked for the Enoch Pratt Free Library system for eight years. Original Source Link...

Montenegro Mourns After Gunman Kills At Least 12 People Before Shooting Himself

CETINJE, Montenegro (AP) — Shock and dismay prevailed in Montenegro on Thursday after a gunman fatally shot 12...

Must Read

How Much the ‘Romeo & Juliet’ Star Had – Hollywood Life

Olivia Hussey was best known for portraying the...

If you thought 2024 was a lot of Hollywood sequels, wait until you get a load of 2025

In 2025, you might need a Captain America...
- Advertisement -

You might also likeRELATED
Recommended to you