The FOMC meeting held on Wednesday and its subsequent results deeply affected the state of the crypto market. Given the large volatility in prices during and after the meeting, liquidation volumes across the market had risen sharply. Thousands of traders were caught in the crossfire in what turned out to be the biggest liquidation trend in the past few months.
Cryptocurrency Liquidations Reach $330 Million
On Wednesday, the Fed announced that it was raising interest rates by another 0.75 points. The decision directly affected the cryptocurrency market as well as the broader macro markets, causing the price of bitcoin to drop by about 8% before a sharp recovery.
The fall triggered massive liquidations across the market, As of Thursday, total liquidations in the crypto market had crossed $330 million, affecting over 88,000 traders. Looking at the fall, the long traders were clearly the biggest losers, but as the prices also saw a sharp recovery, the short traders also took heavy losses.
Liquidations cross $330 million | Source: Coinglass
Of the $336 million in liquidations recorded on the last day, 58.96% were from long traders, meaning that $138.13 million was from short liquidations. The largest single liquidation took place from the OKEx exchange, with a single trade of $3.13 million in the BTC-USDT-Swap pair.
Ethereum Takes the Lead
In recent times, the focus has been on Ethereum as the digital asset was successfully upgraded from proof of work to proof of stake. This increased attention has also fueled the performance of the cryptocurrency and its traders in recent days.
ETH liquidations accounted for nearly half of the $336 million in liquidations recorded on the crypto market in a 24-hour period. With 117.73K ETH liquidated, it came to a dollar value of $151.45 million in the meantime.
Market cap at $884 billion | Source: Crypto Total Market Cap on TradingView.com
In contrast, the leading cryptocurrency, Bitcoin, recorded a total liquidation of 5.50K BTC during this period for a total of $105.31 million. This means that the liquidation volume of ETH is almost 50% higher than that of BTC.
XRP was another token that saw large scale liquidations, albeit to a lesser extent than Bitcoin and Ethereum. XRP volume stood at $9.77 million, while SOL and ETC reached $6.73 million and $5.61 million, respectively. All other cryptocurrencies saw liquidation volumes below $5 million.
Featured image from The World Economic Forum, chart from TradingView.com
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