According to data from Coinglass, total liquidations in the crypto market surged by 70% in the past 24 hours, reaching $650 million. Of this total, $366 million were long liquidations, while $284 million were short liquidations. While Bitcoin and a few other rising tokens saw significant short liquidations, most assets have been undergoing long liquidations, suggesting that the market may be cooling down after extreme volatility.
At the all-time high of $81,858, bitcoin pumped its market to $1.6 trillion with $122.1 million of liquidations, which were bad for long positions worth $37.5 million and good for short positions worth $84.6 million. Nevertheless, prices nosedived from a three-month high of $3,241, with $91.2 million in liquidations in Ethereum, $56.7 million in longs, and $34.5 million in shorts.
Crypto Market Sees Massive Liquidations as BTC and ETH Approach Overbought Territory
According to the market, a long liquidation bet came from a bulk of the liquidations, 59% long positions. The number also indicated that $262 million came from Binance, the largest crypto exchange by volume.
The crypto market’s total open interest rose 1.13 percent to $91.9 billion since yesterday, and the global cryptocurrency market cap soared to a three-year high of $2.9 trillion (at writing). Even better, the 24-hour trading volume was over $300 billion and outpaced signs of mammoth market activity.
However, the speed of the price movements has increased Bitcoin’s and Ethereum’s movement into the overbought zone. Bitcoin eyes another spike to 75, but Ethereum’s RSI is already 74. These levels are often a call to guard against short-term profit-taking; they are levels an investor has to take profit on a recent explosion.
Ethereum was trading at $3,150, down 1% over the past 24 hours. Some cited the proliferation of long liquidations as the reason.
All this, however, will not prevent the market from having high volatility, especially as open interest, volume, and liquidations increase. Others believe the market is here today. Another sounding the bearish tone for 2025, CryptoQuant CEO Ki Young Ju warned that the value of the futures market ‘may have overheated’ and that other than large institutional investors, the recent bull run was not due to retail investors.
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