A Wave of Large-Scale Liquidations is Sweeping Through the Crypto Market

The crypto market was rocked by a wave of $96 million liquidations, triggered by the bitcoin price drop to $65,000. This sharp decline led to the liquidation of leveraged positions for tens of thousands of traders, primarily on centralized exchanges.

Bitcoin and altcoins struggle to regain their peaks

The crypto market has been experiencing a period of intense turbulence for several months, with bitcoin (BTC) and other digital assets struggling to regain the peaks reached in March 2024. 

Last week, BTC fell by 2.5%, dropping from $69,547 to $66,018, leading to the liquidation of leveraged positions worth nearly $200 million. This bearish trend continued, with bitcoin reaching $65,890 on June 17.

This drop triggered a wave of massive liquidations, with approximately $96 million wiped off the market in 24 hours. According to CoinGlass, long traders suffered losses of $62.14 million, while short traders recorded a more modest loss of $32.91 million. 

Ethereum was the hardest hit with $21.36 million liquidated, followed by Bitcoin with $10.54 million.

Centralized exchanges on the front line

Liquidations mainly occurred on centralized exchanges, with Binance recording the largest liquidation order at $4.21 million. The world’s largest crypto exchange thus accounted for more than half of the funds liquidated in a single day, with its users losing approximately $48.21 million, or 51.07% of the total liquidations.

Other platforms such as OKX, Bybit, and Huobi Global (renamed HTX) also suffered significant losses, liquidating $29.63 million, $8.17 million, and $5.83 million, respectively. 

Since the beginning of June, liquidations have been taking place on centralized exchanges. On June 7, losses had already reached $400 million, and last week, the sector recorded liquidations amounting to $190.97 million.

In summary, this wave of liquidations highlights the persistent volatility of the crypto market and the risks associated with leveraged positions. As bitcoin and altcoins struggle to regain their highest levels, traders must remain cautious and adjust their strategies to navigate these turbulent waters.