Summary: $256 Million Lost in a Single Day
As prices soared across key assets after the 2024 U.S. presidential election, the cryptocurrency market experienced an astounding $256 million in liquidations on Thursday. The majority of these liquidations were reported by exchanges including Binance, OKX, and Bybit; Binance alone accounted for almost half of these.
Bitcoin Hits a New Record High
As market mood strengthened, Bitcoin, the biggest cryptocurrency, reached its highest point ever at $76,000. Investor interest was rekindled by this post-election rise, which came after months of poor performance. Other other assets had significant increases as well, like as Ethereum and Solana.
As the price approaches $3,000, Ethereum dominates liquidations.
The price of Ethereum rose sharply, approaching $3,000. Many leveraged traders were taken off guard by this sudden rise, which resulted in liquidations of $65.01 million. The quick price change resulted in the closure of $18 million in long bets and $48 million in short ones.
Market optimism is fueled by Trump’s pro-crypto policies.
In the cryptocurrency world, confidence has been sparked by Donald Trump’s reelection. Trump made promises throughout his campaign to remove regulatory pressure on the cryptocurrency sector and to further integrate cryptocurrencies into the American financial system. As traders took additional positions, these assurances helped fuel the asset price boom.
Bitcoin Traders Lose a Lot of Money
About $53 million was liquidated as a result of the sharp rise in the price of Bitcoin, which particularly affected traders who had expected a decline. A total of $30 million was lost by short traders, and an additional $23 million was lost through forced liquidations for those with unduly optimistic bets.
Altcoins Participate in the Rally with Significant Settlements
High volatility was also seen in altcoins like Dogecoin and NEIRO, a token that was modeled after Dogecoin. While NEIRO experienced forced closures totaling over $7 million, Dogecoin had to deal with liquidations of about $10 million.
Exchanges See High Levels of Liquidation
Prominent exchanges including Bybit, OKX, and Binance were hardest hit by the liquidations. Just Binance had $97 million in liquidated holdings, with Bybit and OKX coming in second and third, respectively, with $46 million and $45 million.
Affecting Thousands of Traders
During this market upswing, 77,733 cryptocurrency traders were liquidated. One trader lost more than $22 million in an ETH/USDT position on Bitmex, which was one of the most significant losses.
Notwithstanding setbacks, market activity is still high.
Market activity is still high as traders try to profit from potential price changes in Bitcoin, Ethereum, and other important assets, even in the face of the large liquidations. Liquidations of around $7 million in the last hour alone demonstrate the ongoing volatility and interest in the cryptocurrency market.
