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.
2 min read
Updated: Aug. 17, 2023 at 9:24 am UTC
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.
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 thereโs 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%.
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%.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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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.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Willy Woo, born in Hong Kong and raised in New Zealand from a young age, embarked on a technology-driven career path after completing his university education.