Key Points
- The global crypto market cap has fallen below $2.5 trillion, leading to a 92.5% surge in cryptocurrency liquidations.
- Ethereum (ETH) and Bitcoin (BTC) have seen the largest liquidations, with the most significant one occurring on Binance.
The global crypto market cap has seen a significant drop, falling under the $2.5 trillion mark. This decrease has caused a drastic surge in cryptocurrency liquidations, which have risen by 92.5% in the past day, totalling $292.22 million.
The market-wide downturn has resulted in almost 89% of the total amount, or $259.7 million, belonging to long positions. The remaining $32.5 million has been liquidated from short-position holders.
Ethereum and Bitcoin Bear the Brunt
According to the data, Ethereum (ETH) has experienced the largest allocation, with $101.6 million in liquidations. This figure comprises $97.5 million in longs and $4.1 million in shorts. Bitcoin (BTC) follows closely behind with $83.3 million in liquidations over the past day, including $71.5 million in long positions and $11.7 million in shorts.
The largest liquidation happened on Binance, the biggest crypto exchange by trading volume, with $11.78 million in the BTC/USDT trading pair.
Global Market Impact
The increased amount of liquidations coincides with the global cryptocurrency market capitalization declining by 3.6% over the past 24 hours. The total crypto market cap fell from the $2.5 trillion mark to $2.42 trillion. Bitcoin reached a high of $67,110 on Wednesday, July 24, before dropping close to $64,100.
Ethereum is among the top losers in the past 24 hours with an 8.1% price drop. Currently, Ethereum is trading at $3,160. This decline occurred after the spot ETH ETFs in the U.S. recorded a net outflow of $133.3 million on their second trading day, July 24.
The total open interest in the cryptocurrency market decreased by 4% following the surge in liquidations and is currently around $63.6 billion. At this stage, lower market-wide volatility would be expected with a reduced amount of incoming liquidations.
