Over $900 Million Liquidated Today as Market Cap Loses $150 Billion
27 Oct, 2021•2 min read•Other
The cryptocurrency market took a hit today as its capitalization lost around $150 billion in the past few hours. This also saw a little over $900 million worth of long and short positions liquidated.
As we reported earlier today, bitcoin’s price tumbled below $60K and tested the support found at $58.3K. This sent the entire market downwards as almost all cryptocurrencies saw double-digit declines with the exception of a few. Shiba Inu’s SHIB, AAVE, and 1inch were the major exceptions as all of them are up considerably in the past 24 hours. In any case, the market crash was also responsible for a considerable streak of long positions being liquidated. In the last day alone, around $924 million worth of positions were liquidated, where 88% of them were long. This was also somewhat expected. As CryptoPotato reported on multiple occasions, the average leverage ratio was particularly elevated and so was the funding rate – both signals that a flush-out might be due. And that’s exactly what happened. The majority of the liquidations came from ETH longs – this can also be explained by the fact that earlier today, ETH was pushing for an all-time high right before the crash happened. Data shows that the majority of liquidations took place on Binance (36%), followed by Bitfinex (23%), and OKEx (13.48%).