Key Insights
- The crypto market experienced a sharp decline over the past day due to news of Binance’s CEO stepping down.
- Over $230 million worth of liquidations occurred across the crypto market, with Bitcoin accounting for the most liquidations at $70 million.
- The liquidations were particularly severe for Bitcoin traders who were betting on a rally to $38,000.
- Despite the liquidations, there is some positive news as traders are starting to buy Bitcoin again.
- Bitcoin’s long/short ratio is at 1.06, indicating that buyers outnumber sellers.
Prices in the crypto market declined sharply when the news about Binance’s CEO stepping down hit the market.
According to these reports, Binance agreed to pay more than $4 billion to settle criminal charges with the United States’ SEC.
And as prices declined, several traders got kicked out of the market as millions worth of leveraged long trades got liquidated.
Below is a damage report of sorts, and what it all means.
Thousands Of Traders Get Kicked Off Their Trades
The liquidation data for the last 24 hours was not a pretty sight.
According to data provided by CoinGlass, about $230 worth of liquidations have swept through the overall crypto market in the 24 hours that followed.
Coinglass data also shows that a whopping 93,317 traders were liquidated over the last day, with more than $230 million taken collectively from them.
Overall, the asset with the most liquidations was Bitcoin, which saw its bulls crushed by as much as $70 million.
This happened when Bitcoin lost the battle with the $38,000 and slumped to levels under $36,000 after the Binance settlement news broke out.
The reason the liquidations hit this hard, was that the Bitcoin bulls were betting on a Bitcoin rally to $38,000, before a breakout and a resumption of its uptrend.
However, things went sour pretty quickly, with other assets including ether, which lost $27 million, Solana, which lost $10 million, and Binance Coin, which lost $6 million.
There Might Be Some Good News
Among the exchanges, Binance recorded the most massive liquidations, with about $100 million taken from traders.
Next up was OKX, with $63 million, and ByBit with $37 million.
However, there might be some positive news to draw from this.
Traders, it appears, are starting to buy Bitcoin again, as shown by Coinglass’ long-short ratios.
This metric sits at about 1.06 and shows that the buyers (51.64%) outnumber the sellers (48.36%).
This establishes the lows of Bitcoin’s most recent slump ($35,735) as significant support, from which Bitcoin can now retest (and possibly break above) $38,000.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
