The Devastating Bitcoin Flash Crash: Over $220 Million Lost, Liquidating 81,000 Crypto Traders
In a dramatic downturn for the cryptocurrency market, a flash crash in Bitcoin's price has led to over 81,000 traders being washed out of their positions, culminating in more than $220 million in losses. The event occurred as Bitcoin took a bearish turn, slipping below $69,000 once again at the start of this week. Though some recovery in Bitcoin’s price has been noted since the crash, the blow to the crypto trading community has been substantial.
Over 81,400 traders felt the immediate impact, facing liquidation as the largest cryptocurrency by market capitalization stumbled to support just above $68,800. The highest single liquidation occurred with the ETH-USD-SWAP pair, where a trader lost an astonishing $7 million. Long traders bore the brunt of this turmoil, with 70.01% of the liquidated positions belonging to them, resulting in over $156 million in long liquidation volumes within the last day.
OKX exchange emerged as the platform with the highest liquidation volumes during this crash, responsible for nearly 46.87% ($104.61 million) of all liquidations. Binance and Bybit followed, with significant but lesser volumes.
Among the cryptocurrencies, not only Bitcoin and Ethereum were hit hard. Meme coins such as Dogecoin and PEPE were also subject to considerable liquidations, showcasing the widespread effect of the crash across various assets in the crypto space. Interestingly, Dogecoin surpassed even Solana in liquidation volumes, marking a notable impact on lower-market-cap cryptocurrencies.
Long traders, in particular, have found themselves facing challenging conditions. Despite the short recovery phases, the market trend for these traders has remained decidedly bleak, with a notable proportion of liquidation percentages inclined towards long positions across various timeframes.
As the market continues to navigate through this turbulence, Bitcoin faces resistance around $69,500, with its price hovering near $69,450. This slight 1.1% decline in the last day adds to the apprehension around the asset’s immediate future trajectory.
Please note that this article serves for educational purposes and should not be considered as financial advice. Investment in cryptocurrency markets carries risks, and readers are encouraged to conduct thorough research prior to making any investment decisions.
Analyst comment
This news is negative for the cryptocurrency market. The flash crash in Bitcoin’s price resulted in over $220 million in losses and the liquidation of over 81,000 traders. Market sentiment is bleak, and Bitcoin faces resistance around $69,500. Traders should proceed with caution and conduct thorough research before making any investment decisions.
