Ahmed Ali On the morning of August 1st, Bitcoin fell beneath the $29K mark, marking a 1.4% decrease in the total crypto economy, which landed at a total value of $1.17 trillion. This led to $92 million worth of liquidations in the cryptocurrency derivatives markets, mostly in long positions.
Ripple Effects: The Descent of Bitcoin Below $29K Ignites $92 Million Worth of Liquidations
The cryptocurrency economy faced a noticeable downturn on the first day of August, causing the total market value to drop by 1.4% in the last 24 hours, coming to rest at $1.17 trillion by 11:00 a.m. Eastern Time on Tuesday.
According to data from Coinglass, there was a liquidation of approximately $92.95 million over the past day.
The biggest losers of the day were PLS and HEX, both linked to Richard Heart’s projects. Other digital assets such as COMP, AAVE, SNX, GMX, and APE also experienced losses ranging from 4.87% to 11.35% within the previous 24 hours.
By 11:18 a.m. ET on Tuesday, Bitcoin (BTC) had decreased by 1.61% against the US dollar, while Ethereum (ETH) had experienced a 1.72% drop. However, Litecoin (LTC), in anticipation of its upcoming halving event, managed to stave off losses, marking a slight 0.73% increase by 11 a.m. Tuesday.
Despite this, Litecoin, like Bitcoin and several other cryptocurrencies, saw a downward trend in its prices in the late hours of July 31st. As per data from coinglass.com, LTC derivatives traders experienced $2.63 million worth of liquidations, with $1.88 million in long positions.
In the cryptocurrency derivatives markets, there were liquidations amounting to $92.95 million over the past day, with Bitcoin (BTC) positions comprising $22.38 million and Ethereum (ETH) contributing $16.73 million to the liquidations. XRP saw $4.66 million in liquidations, while CRV experienced $5.87 million in the previous 24 hours.
Roughly $80.20 million of the liquidations came from long positions, and $12.76 million originated from short positions. In the past 12 hours alone, liquidations amounted to $13.88 million, which included $7.79 million in long positions.
What are your thoughts on the $92 million worth of liquidations in the last day? Please share your insights and perspectives on this topic in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Cryptocurrency liquidations.
What caused the $92 million in derivatives liquidations in the crypto market?
The $92 million in derivatives liquidations in the crypto market were triggered by Bitcoin’s dip below the $29K threshold. This led to a cascade effect, causing losses in long positions across various digital assets.
Which cryptocurrencies experienced the largest losses during this market downturn?
PLS and HEX, both tied to Richard Heart’s projects, were among the biggest losers during the market downturn. Additionally, COMP, AAVE, SNX, GMX, and APE sustained losses ranging from 4.87% to 11.35% within the previous 24 hours.
How did Bitcoin and Ethereum perform during this period?
At 11:18 a.m. ET on Tuesday, Bitcoin (BTC) dropped 1.61% against the US dollar, while Ethereum (ETH) fell by 1.72%. On the other hand, Litecoin (LTC) managed to maintain a 0.73% increase as of 11 a.m. on Tuesday, despite the late-hour slip on July 31st.
What was the overall impact of this market downturn on the crypto economy?
The crypto economy experienced a 1.4% decrease, bringing the total market value to $1.17 trillion on the first day of August. This decline was mainly driven by the liquidations in the cryptocurrency derivatives markets.
How much of the liquidations came from long positions?
Approximately $80.20 million of the total liquidations originated from long positions, while $12.76 million came from short positions.
Which cryptocurrencies saw the highest liquidations in the past 24 hours?
Among the liquidations, Bitcoin (BTC) positions accounted for $22.38 million, Ethereum (ETH) for $16.73 million, XRP saw $4.66 million, and CRV registered $5.87 million over the previous 24 hours.
What is the significance of Litecoin’s upcoming halving event in relation to this market downturn?
Litecoin managed to maintain a slight 0.73% increase despite the market downturn, which might have been influenced by the anticipation of its impending halving event that occurred within 24 hours of the reported period.
How much were Litecoin’s derivatives traders affected during this period?
Litecoin derivatives traders encountered $2.63 million in liquidations, with $1.88 million from long positions during this market downturn.
Were there any other notable market fluctuations in the cryptocurrency space?
Aside from the mentioned cryptocurrencies, several other digital assets experienced price declines during this period, indicating significant market volatility and fluctuations.
More about Cryptocurrency liquidations.
- Coinglass: Coinglass website
- Bitcoin (BTC): Bitcoin on CoinMarketCap
- Ethereum (ETH): Ethereum on CoinMarketCap
- Litecoin (LTC): Litecoin on CoinMarketCap
- Ripple (XRP): XRP on CoinMarketCap
- COMP: COMP on CoinMarketCap
- AAVE: AAVE on CoinMarketCap
- SNX: SNX on CoinMarketCap
- GMX: GMX on CoinMarketCap
- APE: APE on CoinMarketCap
- Richard Heart: Richard Heart’s Twitter
