Cryptocurrencies have been hit by a wave of liquidations in recent times, dealing a blow to traders who were hoping for the markets to go up again. However, there may be hope in sight, in the form of withdrawals from exchanges.
Since November, over $260 million has been liquidated on the crypto market, as lows weren’t seen since then. A majority of the losses were caused by Ethereum (RTH), followed by bitcoin (BTC).
Around $43 million worth of ETH was liquidated by Ethereum traders. LUNA liquidated $2.77 million, followed by Bitcoin with $31 million.
In the vast majority of cases, the liquidations took place on FTX, OKex, and Binance. Nearly 69,000 traders lost their positions during this period.
$43 Million Worth of ETH Liquidated
About $43 million worth of ETH was liquidated by Ethereum traders, worth over 17,600 ETH. After Bitcoin, LUNA liquidated $2.77 million, followed by Bitcoin with $31 million. Most of these liquidations occurred on OKex, FTX, and Binance.
In the past few days, the market has teetered back and forth, and bitcoin had briefly looked like it might cross $40,000 before falling.
Likewise, inflows into exchanges have been rising, as Glassnode notes that the BTC exchange inflow volume (7d MA) hit 1,755.021 BTC, a three-month high.
With trading volume standing at roughly $102 billion, the market cap of crypto fell from $1.75 trillion to $1.62 trillion in the past day. Currently, Bitcoin has a market capitalization of $638 billion, down from a peak of $1 trillion in 2017.
We don’t know what triggered the sell-off, but all markets are experiencing downturns, including crypto.
This points to the idea that the crypto market is moving closer to tradition. Crypto has been more closely correlated with the S&P 500 and Big Tech firms in the past 12 months. Due to the crypto market’s tighter integration with the global economy, the correlation is inevitable.
Via this site.