The cryptocurrency market has faced significant turbulence, with more than $415 million in long and short positions liquidated within the last 24 hours. This turmoil was primarily triggered by Ethereum’s sudden drop below the critical $4,000 mark, a level it had not breached in over 40 days.
According to data from Coinglass, a staggering $331.35 million was liquidated in just the past 12 hours, contributing to a total of $415.92 million lost. The liquidation event was particularly harsh for Ethereum, which saw around $100 million in long positions wiped out during the early hours of trading. A notable cryptocurrency whale suffered a staggering loss of $36.4 million, bringing their total losses to approximately $45.3 million in this volatile period.
In total, the liquidations comprised about $182.23 million in Ethereum positions, with Bitcoin liquidations amounting to $58 million. A contributing factor to the downward pressure on Ethereum was disappointing performance in spot Ethereum exchange-traded funds (ETFs), leading to nearly $300 million in net outflows within the week.
Despite the dramatic events, the market was somewhat resilient, as Ethereum’s price recovered to approximately $4,035. However, this price still reflects a 12% decline over the past week. Observers noted a notable increase in whale activity during this period, with wealthy investors capitalizing on the sub-$4,000 opportunity to acquire nearly $1 billion worth of ETH from exchanges and over-the-counter markets.
In the aftermath of the liquidation, Bitcoin also experienced a slight setback, with its value dropping by 0.9% in the last 24 hours, settling around $111,690. Analysts suggest that Bitcoin dominance may rise to 60%, with expectations of continued weakness in Bitcoin/altcoin pairs in the coming month. There are also predictions that Ethereum could potentially reach a new all-time high, although the liquidity might shift back to Bitcoin soon.
