The cryptocurrency market experienced a significant jolt as Bitcoin, the largest cryptocurrency by market capitalization, slipped below its previously plateaued threshold of $26,000. This downward movement has led to a surge in total liquidations, with traders losing more than $300 million within a span of 24 hours.

The repercussions of this event are reverberating throughout the market, with major exchanges recording substantial liquidation figures.

Record Liquidations Hit The Market

The crypto market has been shaken by a surge in liquidations as Bitcoin faltered, prompting a domino effect of positions being forcefully closed. According to from Coinglass, roughly 112,837 traders were liquidated in the past 24 hours, resulting in a cumulative loss of $304 million and counting.

Among the exchanges involved, Binance took the lead in liquidations with $100.4 million, closely followed by OKX at $80.62 million. Although other exchanges also witnessed liquidations, their impact was comparatively lesser.

In the wake of Bitcoin’s dip, long positions bore the brunt of the liquidations, accounting for approximately $277.45 million (91.22%) of the total. This reflects the overwhelming presence of traders who had anticipated a price increase.

Simultaneously, short positions also faced liquidations, amounting to approximately $26.71 million or nearly 10% of the total. The volatility of the market proved detrimental to both sides of the trading spectrum.

Amid the widespread liquidations, one trader stands out for enduring the largest single liquidation. A trader on Bitmex recorded a massive loss of $9.94 million in an XBTUSD swap, underscoring the magnitude of the market upheaval.

Additionally, Bitcoin liquidations alone accounted for $105.54 million, while Ethereum (ETH) witnessed liquidations totaling $33.87 million, further highlighting the far-reaching implications of this event.

Bitcoin Slips Below $30,000

The global crypto market cap also slumped below the previously established $1.2 trillion mark with a value of $1.133 trillion at the time of writing, down by nearly 3.7% in the last 24 hours. The plunge comes after the ongoing negativity in the market such as the thrown-around lawsuit by the Securities and Exchange Commission (SEC).

The news impacted Bitcoin significantly as the asset has lost more than $20 billion from its market cap in the past 24 hours and is down by nearly 5%, indicating possible violent selling pressure. Though the top crypto saw a slight uptrend on Sunday, it has seen a bearish trend since then.

Meanwhile, at the time of writing, BTC currently trades below $26,000 with a 24-hour trading volume of $21 billion. An increase from the previously recorded daily trading volume of $11 billion seen last week Tuesday.

It is important to highlight that amidst the substantial liquidations, certain traders managed to capitalize on the market movement by strategically shorting their positions. While a considerable number of traders faced losses due to their long positions on Bitcoin, those who correctly anticipated the downward trend are now reaping profits in the current slumping cryptocurrency market.

Featured image from iStock, Chart from TradingView