Crypto and liquidations: a real bloodbath since yesterday!

Sat 20 August 2022 ▪ 3 p.m. ▪

min read – by

What is happening in the cryptocurrency market right now is nothing short of a bloodbath. Large coins are in free fall, even altcoins are not doing well. To bring home the point, market liquidations have just crossed $600 million. This in just 24 hours. What’s really going on?

Falling cryptos and ATH from liquidations

Of the top 20 tokens in CoinGecko’s ranking based on market cap, only 4 tokens show a green curve. These are: Tether (USDT), Binance USD (BUSD), Shiba Inu (SHIB) and LEO Token (LEO). We can still continue our investigation, but the observation remains the same.

Situation of the top 15 cryptos – Source: CoinGecko

For bitcoin, the coin’s price was trading at $21,236.19 at the time of writing, falling 2.7% over 24 hours and 13% over 7 days. As for Ether, it traded at $1,633.70 before falling 6.5% over 24 hours and 16.4% over 7 days.

Bitcoin price evolution over 7 days – Source: CoinGecko

But the worst was announced yesterday by Coinglass. Indeed, this data showed more than 168,000 trades during the day. As a result, traders lost $602.71 million.

A few numbers to remember

From this Conglass report, stats emerge that are not very favorable for cryptocurrencies:

  • 168,586 transactions settled during the day of August 19;
  • $602.71 million in recorded losses;
  • 88.85% of these liquidations were long trades;
  • $435.54 million in losses were realized in just 12 hours;
  • $223 million is total same-day bitcoin liquidations, or 10,380 BTC;
  • 98.88% of these liquidated BTC are related to long trades;
  • 48.47% of bitcoin liquidations took place on the Okex exchange;
  • ETH saw $161.93 million liquidated;
  • Ethereum Classic (ETC), Solana (SOL) and Filecoin (FIL) posted losses of $25.63, $14.8 and $12.45 million respectively;
  • etc

DOGE, ADA, LIK, XRP and AVAX also suffered from this history of mass liquidations. To say that the SHIB was not part of this lot. Is this the sign that he is walking on the moon?

The same liquidation statistics for the month of June?

As a reminder, the crypto markets hit the $600 million mark last June. A CryptoPotato article from June 19th gives us details on this.

At that point, bitcoin dipped below $20,000 for the first time, ending its run at $17,500. The same data provider Coinglass has occasionally lost nearly $100 billion across the crypto market.

In addition, the number of liquidated traders was 160,000 on a 24-hour scale. The 600 million dollars that have been liquidated during this period are mainly bitcoins and ethers: 300 and 200 million dollars respectively.

Let’s not forget that the crypto market has seen worse. Nairametrics reminds us of an $881 million liquidation at the beginning of the year. At the time, bitcoin was trading for $40,000. The logic of these losses, you probably already understood. Indeed, liquidations are often accompanied by price drops, transfers to the red of major cryptos and altcoins. However, these assets have the power to be reborn every time they are knocked down.

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The blockchain and crypto revolution is underway! And the day the impact will be felt on the world’s most fragile economy, against all odds, I’ll say I had something to do with it

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