Forced liquidations in the cryptocurrency market have reached a total value of $112.67 million, reflecting the prevailing bearish sentiment. The largest sell-off occurred on Binance, where $4.53 million worth of Ethereum (ETH) was traded against Bitcoin (BTC). This suggests that traders were speculating on a rebound for Ethereum, but their bets were quickly thwarted.
These liquidations coincide with Bitcoin’s price remaining significantly below its all-time high. Currently trading at around $27,692, Bitcoin has experienced a 0.53% decrease in the past 24 hours. Over the last seven days, it has lost 0.36%, with bullish momentum remaining elusive.
Bitcoin’s decline of over 57% from its peak in November 2021, when it reached nearly $65,000, highlights the broader downturn in the crypto market over the past year. Factors such as ongoing macroeconomic uncertainty and events like the FTX collapse, followed by regulatory pressures, have significantly dampened investor interest in riskier crypto assets.
Given the unfavorable and highly volatile market conditions, traders are advised to exercise caution and manage their risks effectively. Implementing stop losses and maintaining disciplined position sizing will be crucial for navigating these turbulent markets, as forced liquidations continue to occur.
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