Cryptos Saw $1B In Liquidations As BTC, ETH Lose Major Support Levels

Cryptos saw $1B in liqudations as both BTC and ETH lost major support levels we can see more today in our latest altcoin news today.

Bitcoin lost the $25,000 level while ETH slid to $1200. The crypto-tracked futures lost over $1 billion in the past day and were weighed down by a weak sentiment for BTC and other coins amid the weak global economic outlook. The liqudations refer to when the exchange forcefully closes a trader’s leveraged position because of a partial or total loss of the trader’s initial margin and it happens when a trader is unable to meet the margin requirements of the leveraged positions.

The losses came as BTC lost major support of $25,000 with the crypto market cap reaching levels seen in January 2021 and most cryptocurrencies dropped by 15%. Bitcoin accounted for $532 million of all the liqudations right after Ether at $317 million and SOL tokens at $20 million. The Futures tracking Cardano ADA, GMT, and Binance ecosystem tokens saw over $6 million in losses with 213,000 individual trading accounts seeing liquidation in the past day.

Longs or traders that bet on the higher prices, saw $510 million in liqudations and the shorts or the bets on lower prices saw $554 million in losses which suggests futures traders are adding to the market volatility and affected traders equally in either direction. FTX recorded over $417 million in liqudations which is the most among its counterparts followed by OKX at $251 million and Binance at $198 million. The open interest dropped by 7% in the past day to $23 billion which suggested a huge amount of traders closed the positions expecting further market volatility.

BTC traded at over $22,000 in the EU with a 12-week slide continuing. The asset lost 66% of its value from a high of $69,000 in November. Most of the decline came after the US FED planned to hike the rates in the upcoming months and battle the effects of record inflation which is a move that caused a spike in global stocks and cryptocurrencies with investors taking money off assets seemingly risky. The sentiment among market observers remained bearish with some warning of major losses ahead.