85,000 crypto traders ‘liquidated’ after Bitcoin fell to nearly $30,000 🚨 This article is 3 years old...
85,000 crypto traders ‘liquidated’ after Bitcoin fell to nearly $30,000
Thousands of crypto traders were liquidated yesterday as Bitcoin went down. Here’s the stats.
2 min read
Updated: Jul. 16, 2021 at 6:09 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Tens of thousands of crypto traders were liquidated last night as Bitcoin briefly dropped to under $30,500, data from multiple sources shows. Altcoins saw a similar dump as a result, with millions of dollars getting shaved off on lesser-known coins like AXIE and SAND.
Over 82,000 traders were liquidated, with the largest single liquidation order taking place on Bybit—a Bitcoin trade valued at $4.86 million.
Liquidations and how
‘Liquidations,’ for the uninitiated, occur when leveraged positions are automatically closed out by exchanges/brokerages as a “safety mechanism.” Futures and margin traders—who borrow capital from exchanges (usually in multiples) to place bigger bets—put up a small collateral amount before placing a trade.
Bitcoin traders took the majority of such liquidations yesterday. As per data from analysis tool Bybt, $146.14 million worth of Bitcoin trades were liquidated, followed by Ethereum traders ($52 million), XRP traders ($8 million), and Axie Infinity traders ($5 million).
Traders punting on memecoin Dogecoin took on $5 million in liquidation damages of their own, while Sandbox NFT (SAND) and Chromia (CHR) traders saw losses of $2.59 million and $2.38 million respectively.
Where did the liquidations occur?
Futures powerhouse Bybit saw over $100 million in liquidations alone, with 83% of all traders going ‘long’—or betting on a price rise—on that exchange. $63 million in liquidations came from OKEx, while Binance saw a $23 million chunk get liquidated.
Meanwhile, despite the millions lost, the data is unlike what was seen on several occasions earlier this year. In April 2021, a staggering $1 billion in market liquidations, affecting one million trading accounts, occurred after Bitcoin reached the top and dropped off a cliff.
Then in June, on the back of China’s renewed criticism of Bitcoin, market volatility caused 200,000 traders to get liquidated. Several large-cap cryptos like Solana, XRP, and Polkadot saw double-digit percentage declines, with even Dogecoin racking up $30 million worth of liquidations in a single day.
Still, what looks like madness in traditional circles continues to be a normal day for those in crypto.
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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.
The Sandbox
$0.35776
The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences on the Ethereum blockchain using the platform’s utility token SAND.
Axie Infinity
$5.89910
Axie Infinity is a game about collecting and raising fantasy creatures called Axie, on Ethereum platform.