As bitcoin dipped below the $29K threshold and the overall crypto economy experienced a 1.4% decrease to $1.17 trillion, cryptocurrency derivatives markets underwent $92 million in liquidations, primarily in long positions.
Cascading Effect: Bitcoin’s Fall Under $29K Sparks $92 Million in Liquidations
The crypto economy, along with a significant number of digital assets, faced a decline on the first day of August. The total value of the crypto market fell by 1.4% within the previous 24 hours, landing at $1.17 trillion as of Tuesday morning (11:00 a.m. Eastern Time).
The day’s largest losers included PLS and HEX, two tokens tied to Richard Heart’s projects. In addition, COMP, AAVE, SNX, GMX, and APE sustained losses ranging from 4.87% to 11.35% over the last day.
Bitcoin (BTC) dropped 1.61% against the US dollar, while ethereum (ETH) fell by 1.72%. With its network’s impending halving event in less than 24 hours, litecoin (LTC) managed to ward off losses and maintained a 0.73% increase as of 11 a.m. on Tuesday.
Nevertheless, like bitcoin and various other cryptocurrencies, LTC prices slipped throughout the late hours on July 31. According to coinglass.com data, LTC derivatives traders encountered $2.63 million in liquidations, with $1.88 million in long positions.
Of all cryptocurrency derivatives markets, $92.95 million was liquidated over the past day; bitcoin (BTC) positions accounted for $22.38 million and ETH for $16.73 million in liquidations. XRP saw $4.66 million in liquidations, while CRV registered $5.87 million over the previous 24 hours.
Approximately $80.20 million of these liquidations originated from long positions and $12.76 million from shorts. In the last 12 hours alone, there were $13.88 million in liquidations, which included $7.79 million in long positions.
What do you think about the $92 million in liquidations over the past day? Share your thoughts and opinions about this subject in the comments section below.