Crypto Liquidations Double as Market Cap Hits Two-Month Low

Infotrading.io - The cryptocurrency market has experienced a significant surge in liquidations, coinciding with a notable decline in market capitalization. According to data from Coinglass, total crypto liquidations have increased by 114% over the past 24 hours, amounting to $265 million. This development has sparked concern among investors and traders, highlighting the volatility and unpredictability inherent in the crypto market.

Breakdown of Liquidations

Out of the $265 million liquidated, $236 million were long positions, indicating a widespread sell-off among traders expecting price increases. In contrast, only 11% of the liquidations, worth $29 million, were short positions. The data reveals that over 102,000 traders have been liquidated in this period, underscoring the extensive impact of recent market movements.

Leading Cryptocurrencies

Bitcoin (BTC) has been at the forefront of this liquidation surge, with over $67 million in liquidations within 24 hours. The price of Bitcoin briefly fell below the $58,000 mark, rekindling fear, uncertainty, and doubt (FUD) among market participants. Ethereum (ETH), the second-largest cryptocurrency by market cap, followed closely with $63.6 million in liquidations. ETH has declined by 4.4% in the past 24 hours, trading at $3,215 at the time of reporting.

Exchange-Specific Data

Binance, the largest cryptocurrency exchange by trading volume, witnessed $112 million in liquidations, accounting for 42% of the total liquidations. OKX ranked second with $87 million in liquidations. These figures highlight the concentration of trading activity and the substantial impact of market fluctuations on major exchanges.

BTCUSDT Liquidation Heatmap

Market Cap and Open Interest

Data from Coinglass indicates that global cryptocurrency open interest has decreased by 4.7% over the past 24 hours, currently hovering around $58.5 billion. This decline in open interest suggests a reduction in market participation and a potential shift towards a more cautious trading environment.

CoinGecko's data shows that the global crypto market capitalization has dropped by 3.4% in the past day, falling to $2.29 trillion. This level has not been observed since May 1, a period characterized by short-term bullish momentum. The current decline in market cap reflects broader market sentiment and the influence of ongoing FUD.

Investor Sentiment and Market Outlook

Market movements remain unpredictable amidst widespread FUD. A recent report by Glassnode on July 3 highlighted that Bitcoin investors are exhibiting "indecision" as the price remains below the $64,000 mark. This sentiment is indicative of broader market uncertainty and the challenges faced by traders in navigating volatile conditions.

The recent surge in crypto liquidations and the decline in market capitalization underscore the inherent volatility and unpredictability of the cryptocurrency market. As Bitcoin and Ethereum lead the liquidation charts, investors are closely monitoring market trends and sentiment. The ongoing fluctuations emphasize the need for cautious and informed trading strategies in the ever-evolving crypto landscape.