Bitcoin, Ethereum See Massive Liquidations Over the Weekend: What Happened?

The cryptocurrency market experienced a wild weekend with Bitcoin and Ethereum leading a surge in liquidations. Over the past 24 hours, the market has seen massive liquidations, surpassing $1 billion as Bitcoin suffered a significant drop. This volatility impacted thousands of traders.

Bitcoin's Price Plunge and Subsequent Liquidations

Bitcoin briefly fell below a key support level after setting a new peak recently. This price dip triggered significant liquidations, particularly for those holding long positions. Bitcoin long liquidations totaled $430.12 million, highlighting the impact of the sudden downturn.

Ethereum Follows Bitcoin's Lead in Liquidations

Ethereum also experienced substantial liquidations, following Bitcoin's price action. Ethereum long positions saw $343.52 million liquidated, according to data from CoinGlass. This reflects the interconnectedness of the top cryptocurrencies and their sensitivity to market fluctuations.

Crypto Liquidations Exceed $800 Million, Driven by Long Positions

Crypto liquidations exceeded $800 million over the past 24 hours, mostly from longs. This suggests many traders were betting on continued upward momentum but were caught off guard by the sudden reversal. The sharp rally in the combined crypto market capitalization had triggered a new round of liquidations, with Bitcoin (BTC) in the spotlight.

Overall Market Impact: Crypto Market Cap Drops

The widespread liquidations contributed to a decrease in the overall crypto market capitalization. The crypto market cap dropped significantly, reflecting the market's response to the price volatility and the cascading effect of liquidations.

Weekend Trading: Open Interest and Volumes Slump

Bitcoin (BTC) and ether (ETH) were little changed over the weekend as open interest and trading volumes slumped after a significant leverage flush out on Friday. This suggests a period of consolidation and reduced activity following the intense liquidation event.

156,601 Traders Affected by the Liquidations

The scale of the liquidations impacted a large number of traders. Over the past 24 hours, 156,601 traders were liquidated, demonstrating the risks associated with leveraged trading in the cryptocurrency market. Bitcoin and Ethereum dominated these liquidations.