18-8-2023 (LONDON) Cryptocurrency traders were hit with staggering losses of $1 billion in liquidations during a sharp sell-off that rocked digital-asset markets. Bitcoin, the pioneer cryptocurrency, experienced a significant drop, reaching a two-month low at around $26,900.
The sell-off intensified throughout the day, with Bitcoin briefly plummeting to nearly $25,000, a level not seen since June. According to Coinglass data, a total of $821 million in long positions, which are bets on price increases, were liquidated as traders rushed to exit the market. BTC traders bore the brunt of the losses, with $472 million in long liquidations, followed by ether (ETH) with $302 million.
These liquidations mark the highest level of BTC liquidations in a single day since June 2022, as reported by Coinalyze data, a period when the price of the leading cryptocurrency plummeted to $17,000. The sell-off occurred amidst a backdrop of financial market jitters, including weakening foreign currencies, concerns over the Chinese economy, and bond yields reaching multi-year highs.
The decline in crypto prices during Thursday afternoon’s U.S. trading hours turned this month’s gradual downtrend into a bloodbath for investors. Major cryptocurrencies such as BTC and ETH experienced losses approaching double digits, reaching their lowest levels since early summer.
