Bitcoin dips below $29k sparking $160M liquidation in crypto market Bitcoin dips below $29k sparking $160M liquidation in crypto market

Bitcoin dips below $29k sparking $160M liquidation in crypto market

Bitcoin price decline was attributed to macroeconomic factors.

Bitcoin dips below $29k sparking $160M liquidation in crypto market

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bitcoin’s (BTC) dip below $29,000 in early trading hours resulted in liquidations totaling around $160 million across the cryptocurrency market.

Coinglass data revealed $48 million in liquidation for investors holding positions in the flagship asset, primarily affecting long traders who incurred most of the losses.

$160 million liquidated

In the last 24 hours, the cryptocurrency market witnessed a substantial liquidation of $158.12 million, with 54,608 traders liquidated.

Bitcoin liquidation
Source: Coinglass

According to Coinglass data, most losses were borne by long traders, who lost approximately $140 million. Bitcoin and Ethereum (ETH) contributed significantly to this figure, accounting for a combined loss of $62.67 million. On the other hand, short traders recorded losses lesser than $20 million.

Across exchanges, over 60% of the total liquidations were on OKX and Binance. During the reporting hours, traders on these exchanges lost more than $100 million. Other exchanges like Huobi, Deribit, and Bitmex also recorded a sizeable amount of the total liquidations.

The single most significant liquidation occurred on Bitmex, with an XBTUSD position valued at $2.26 million.

Bitcoin down to $28k

Earlier today, Bitcoin declined 2% to a multi-week low of $28,428 after trading above $29,000 for an extended period.

CryptoSlate Insights attributed the drop-off to multiple macroeconomic factors, including the ย U.S. treasury yields recording its highest close since June 2008 and the U.S. dollar index rising above 103. Per the report, these factors “create a challenging environment for Bitcoin” to thrive.

Market analyst Willy Woo also shared similar observations in a recent post on X (formerly Twitter). Woo said:

“Macro headwinds from US dollar strength. Meanwhile thereโ€™s increasing demand on futures market (pro traders) and on-chain fundamentals picking up.”

The abrupt price movement marks a notable shift from the relatively stable performance observed last month. On Aug. 16, blockchain analytical firm Kaiko stated that BTC’s and ETH’s 90-day volatility dropped to multi-year lows of 35% and 37% each, making them less volatile than oil at 41%.

Bitcoin volatility
Source: Kaiko

Meanwhile, data from CryptoSlate shows that all top 50 crypto assets, includingย Ethereum and BNB, saw losses during the reporting period as the broader market plunged 1.83%.

Mentioned in this article
Posted In: , , Analysis