Crypto Traders Liquidated Over $157M amidst Rising Volatility

The heightened volatility has triggered the liquidation of almost $30 million worth of leveraged Bitcoin positions.

In the wake of intensified market fluctuations, the last 24 hours witnessed liquidations of leveraged crypto positions surpassing an astonishing $157 million. According to Coinglass data, most of the liquidations were linked to long positions, resulting in a significant loss surpassing $134 million. Conversely, short positions were more modest, contributing around $22 million to the total liquidations.

Bitcoin Dips Below $41,000

Over the past 24 hours, Bitcoin (BTC), the leading crypto asset in the industry, has experienced a significant decline of more than 2.53%, according to CoinMarketCap data. The crypto asset slipped below $41,000 to $ 40,720 with a market capitalization of around $795 billion.

Interestingly, the dip comes on the heels of the Securities and Exchange Commission’s (SEC) approval of multiple spot Bitcoin ETFs just twelve days ago. Since then, bitcoin has seen a depreciation of over 7% in its market value.

Following the SEC approvals on January 10, BTC initially rallied above the $48,000 mark before experiencing a sharp decline to around $43,000. Some analysts are now speculating on the possibility of a further decline below the $40,000 mark.

The heightened volatility has triggered the liquidation of almost $30 million worth of leveraged Bitcoin positions. Notably, the majority of BTC liquidations are from long positions, with over $24 million in BTC long positions wiped out in the past 24 hours, according to Coinglass data.

The liquidation occurred on centralized exchanges. Binance, the world’s largest crypto exchange, saw $9.44 million in orders liquidated on the platform. Traders in long positions saw $10.62 million wiped out, while those in short positions lost a total of $10.38 million.

Other crypto exchanges such as OKX, Bybit, Huobi (HTX), Bitmex, and CoinEX have recorded massive liquidations over the past 24 hours. According to Coinglass, the most significant single liquidation occurred on OKX.

Annualized Bitcoin Volatility Jumps 52%

Coinglass’s data also showed that unrealized profits among BTC holders have dwindled from elevated levels observed since the launch of multiple spot ETFs, after 11 years of rejecting such investment products.

Additionally, the annualized volatility of BTC has surged since the SEC approved the spot bitcoin ETFs. Before the approval, the annualized BTC volatility stood at around 46%, but it has now increased to over 52%.

With the crypto asset on a downward trajectory, the entire market capitalization now stands at $1.6 trillion, showing a 2.7% decrease over the past 24 hours.

Other cryptocurrencies, such as Solana (SOL) and Cardano (ADA) have experienced a significant decline in the last day. The tokens, which rank among the top ten digital assets by market capitalization, dropped 5.5% and 4.9%, respectively.

Last week SOL traded above $100, now the token is at $87, while ADA is currently valued at around $0.49, according to CoinMarketCap data.


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