Bitcoin Altcoins Register $500M Liquidations in 24 Hours: Market Wipeout Explained
A sharp pullback in crypto markets late Monday triggered over $500 million in long liquidations, erasing earlier gains as bitcoin (BTC) slipped from weekend highs. The altcoin market, particularly Dogecoin (DOGE), XRP, and XLM, experienced heightened crypto cash rotation, leading to increased overall volatility. In the past 24 hours, more than $500 million worth of crypto positions were wiped out, with the altcoin market leading the charge.
Altcoins Lead Market Wipeout
Altcoins lead market wipeout with over $495 million liquidated in the last 24 hours as Bitcoin dips. Bitcoin long liquidations hit $500 million on Monday as the weekend’s rally was erased and major Altcoins plummeted. The sell off was triggered by a surprise downturn, impacting leveraged positions across the board.
Breaking Down the Liquidations
Of the total liquidations, long liquidations were $379 million, while short liquidations accounted for a smaller portion. Liquidations are once again on the rise, nearing $500 million in the last 24 hours. At press time, total liquidations stood at $431.61 million and climbing. The significant altcoin liquidations underscore the inherent risks associated with leveraged trading in the cryptocurrency space. The market is volatile, and unexpected events can trigger rapid and substantial price swings.
Bitcoin Price Action
Bitcoin dipped after nearing key resistance levels. This triggered a cascade of liquidations, particularly among altcoins with high leverage ratios. Traders should exercise caution and manage their risk accordingly in such volatile market conditions.