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Another USD 1B Liquidated In One Hour As Crypto Selloff Intensifies

Altcoins

Bitcoin

Market

Last updated: June 26, 2023 06:54 EDT

Author

Linas Kmieliauskas

Author

Linas Kmieliauskas

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Last updated:

June 26, 2023 06:54 EDT

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After more than USD 4bn in cryptoasset trading position was liquidated yesterday, another USD 1bn was liquidated today in just one hour as a selloff in the crypto market intensified, increasing bitcoin (BTC)‘s dominance.

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Read the update: Bitcoin Rebounds From USD 45K, Ethereum and Altcoins Pair Losses
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Almost 91% of the liquidated positions are long positions, while BTC accounts for around 40% of them. In the past 24 hours, USD 5.77bn has been liquidated, per bybt.com data.

At the time of writing (09:33 UTC), BTC trades at USD 48,110, rebounding from USD 45,917, reached earlier today. The price is still down by 13% in a day, trimming its all weekly gains. It also dropped by 21% from its all-time high of USD 58,641 (per Coingecko.com), reached this past Sunday.

Other coins from the top 10 list are down by 11%-30%, while dozens of smaller altcoins from the top 100 club are down more than 20%.

As many cryptoassets are dropping against BTC, its dominance, or the percentage of the total crypto market capitalization, is on the rise again, reaching almost 64%, or around 2 percentage points more than a day ago, per coinpaprika.com.

Liquidations in one hour:

As reported, long liquidations have become more numerous over the past month or so. With bitcoin (and other coins) breaking all-time highs nearly every passing week, some traders may feel unable to gain significant exposure without margin trading.

However, a growing number of traders can’t afford to maintain their leveraged positions in the event of dips. Hence, the growing frequency of big liquidations.

Leveraged trading refers to borrowing funds so that you can take a larger position than you would be able to with your existing funds so that you can potentially generate a higher profit. However, while margin trading enables traders to amplify their returns, it can also lead to increased losses and liquidations, which is why experienced traders tend to advise newcomers to stay away from leveraged trading.

Moreover, decentralized finance (DeFi) lending platforms liquidated more than USD 102m in the past 24 hours as ethereum (ETH) crashed by around 20% in the same period of time. It’s around USD 10m more than a previous liquidation record, registered in November last year, per debank.com data.

Almost 84% of the liquidations today happened on the Compound platform.

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