Crypto Traders Suffer $1B Losses in Liquidations in Sharp Sell-Off

This was the largest level of BTC liquidations for a single day since June 2022, Coinalyze data shows, around the time when the leading crypto’s price plummeted to $17,000.

Liquidations in the last 24 hours (Coinglass)

The liquidations occurred as crypto prices fell through the floor during Thursday afternoon U.S. hours turning this month’s slow downtrend into a bloodbath amid financial markets jitters with crumbling foreign currencies, Chinese economic worries and bond yields ripping to multi-year highs. Crypto majors such as BTC and ETH saw near double-digit losses, falling to lowest since early summer.

Read more: Bitcoin Plunges 9%, Sank Below $25K on Binance as August Turns Very Ugly

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Liquidations happen when an exchange closes a leveraged trading position due to a partial or total loss of the trader’s initial money down or “margin” – if the trader fails to meet the margin requirements or doesn’t have enough funds to keep the trade open. When asset prices nosedive, the dynamic can kickstart a cascade of liquidations, exacerbating losses and price declines.

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Krisztian Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Follow @sndr_krisztian on Twitter

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