In simple terms, the overall value of cryptocurrencies is being sold off due to falling asset prices. According to data from CoinGlass, a total of $483.61 million worth of liquidation occurred on various platforms over the past day.
Liquidations breakdown: ETH, SOL and XRP
As an analyst, I’d interpret the situation this way: In the past 24 hours, a significant portion of the market’s decline can be attributed to the selling off of long positions, amounting to approximately $342.34 million. On the other hand, short position traders reduced their holdings by around $141.34 million during this period.
In simple terms, Ethereum (ETH) was responsible for the largest amount of liquidation among alternative cryptocurrencies, totaling approximately $86.43 million. Long-term investors experienced liquidations amounting to about $44.76 million, while short-term traders accounted for around $41.67 million. This development occurred as the value of ETH fell to $3,317.76, representing a decrease of 1.31% over the past day.
Significantly, the price of ETH dropped as low as $3,209.21 during the last trading session, but it has since started to recover and is now at its present level.
In this trading scenario, Solana (SOL) saw twice as many long-position liquidations compared to short-position traders, amounting to a total liquidation of $16.68 million. Specifically, the long-position traders accounted for $10.79 million, while short-position traders accounted for $5.90 million. At present, SOL is being traded at $191.76, a slight decrease from its previous low of $188.96, indicating a shift away from the bullish sentiment that Solana had previously shown.
The total value of all XRP positions being liquidated amounts to approximately $14.16 million. This includes a long position worth $9.28 million and a short position sell-off valued at $4.88 million. Despite showing more resilience than other cryptocurrencies, XRP has also suffered a decrease of 12.86% in its trading volume, which now stands at about $7.72 billion. The current price of XRP is $2.32.
Analyst offers perspective
Most of the closures (of leveraged positions) occurred on Binance, OKX, and Bybit. Binance experienced a total closure value of approximately $202.02 million, which equates to around 41.69%. Traders holding long positions were responsible for about 70.97% of these closures.
On OKX, a total of $140.33 million, representing approximately 28.96%, was registered in liquidations. By contrast, Bybit experienced cumulative losses amounting to $91.99 million, equating to around 18.98%. Additionally, HTX and CoinEx together accounted for roughly 10.02% of the total liquidation figures.
Experts suggest that the fast drop in the value of Bitcoin, the primary digital currency, led to the extensive selling off observed across the market. Given the assumption that Bitcoin might be moving into a period of distribution and is unlikely to experience a significant increase for some time, many investors seem hesitant about investing on a larger scale.
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2025-01-09 15:05