$663 million liquidated after Bitcoin wicks under $57,000 🚨 This article is 4 years old...
$663 million liquidated after Bitcoin wicks under $57,000
The crypto market saw a sudden drop downwards which led to millions of dollars punted by leveraged traders getting liquidated.
2 min read
Updated: Mar. 31, 2021 at 1:02 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto traders were in for a tough surprise on Wednesday morning after a sudden market drop caused over $663 million worth of losses stemming from margin trading, data from markets tool Bybt shows. 88% of all liquidations occurred on ‘long’ positions.
Margin trading is the process via which traders borrow excess capital from their brokers (or exchanges) to either place bigger bets than their capital or to manage risk.
The brokers, in turn, charge a fee as interest and automatically close out positions at a predetermined price level to manage their risk. The trader’s entire capital is then essentially lost and the position is said to be liquidated.
Liquidation insights
As per Bybt, over 151,438 traders were liquidated in the past 24 hours—the total liquidations reached $970 million—and the largest single liquidation order was a BTC trade worth $14.68 million on crypto exchange Huobi.
Of the $663 million liquidated over the past four hours, over 584.33 million were ‘long’ positions, or traders betting on higher asset prices, while $79 million were ‘short’ positions, or traders betting on lower prices.
Traders on Binance saw the biggest hits with over $400 million worth of positions getting liquidated. Futures exchange Bybit followed that with over $145 million in liquidations, while Huobi saw $124 million in liquidations.
On the lower side were crypto exchanges Deribit and Bitfinex, which saw relatively smaller $853,000 and $574,000 in margin positions getting liquidated respectively.
As the below image shows, Bitcoin fell to as low as $56,880 before being aggressively bought up by traders, suggesting the move was more technically driven than having a fundamental rationale behind it. But that led to over $389 million in Bitcoin traders getting liquidated in the past four hours.
Meanwhile, the asset was followed by liquidations on $73 million worth of Ethereum (ETH) positions, $22 million of Binance Coin (BNB), and $11 million worth of Theta Network (THETA) positions. It’s a degen market indeed.
Bitcoin Market Data
At the time of press 1:02 pm UTC on Mar. 31, 2021, Bitcoin is ranked #1 by market cap and the price is down 1.17% over the past 24 hours. Bitcoin has a market capitalization of $1.09 trillion with a 24-hour trading volume of $55.33 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 1:02 pm UTC on Mar. 31, 2021, the total crypto market is valued at at $1.92 trillion with a 24-hour volume of $136.38 billion. Bitcoin dominance is currently at 56.80%. Learn more about the crypto market ›
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Theta
$1.35810
Theta is a decentralized video delivery network, powered by users and an innovative new blockchain.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
HTX
Huobi, a virtual asset exchange, launched a revised branding strategy on September 13, 2023, where “Huobi” will be rebranded as “HTX.” “H” stands for Huobi, “T” represents TRON with a commitment to being all in TRON, and “X” stands for the exchange.
Bybit
Bybit is a cryptocurrency derivative trading platform established in March 2018 and registered in the BVI.
Bitfinex
Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.